New Timeline announced for Making Tax Digital for Business
With all the changes that have happened in recent months it is easy to let some updates go unnoticed and despite the ongoing situation surrounding COVID-19,
HMRC are pushing on with their ambition to become one of the most digitally advanced tax administrations in the world.
Last week, the Government set out its roadmap for the next phases of Making Tax Digital (MTD) which cover VAT, Income Tax and Corporation Tax.
The soft landing period for Making Tax Digital for VAT, which was extended owing to COVID-19, will come to an end on 31 March 2021. This means that all
businesses who were caught in the initial phase of Making Tax Digital for VAT will need to have digital links between any software programs they use.
This will apply from their first VAT Return period starting on or after 1 April 2021.
VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax Digital for VAT for their first returns starting
on or after April 2022. These businesses were exempt from the initial phase with those who already follow Making Tax Digital for VAT voluntarily doing
Self-employed businesses and landlords with business turnover above £10,000 will need to follow Making Tax Digital for Income Tax for their first return
submitted following April 2023.
Further details are expected in the Autumn on how Making Tax Digital will apply to companies with Corporate Tax obligations.
Suffice to say, if COVID-19 hadn’t already given you the incentive to go digital, then Making Tax Digital certainly will.
If you would like any additional information on Making Tax Digital, or help getting digital ready, please contact our Digital Services Manager, Sarah Smith,
on the details below:
Digital Services Manager
direct dial: 01942 292527