Update: Making Tax Digital

As part of their strategy to modernise the way tax is reported, HMRC have this week unveiled their plans for the next phases of Making Tax Digital (MTD).

At present VAT-registered businesses with turnover in excess of the £85k VAT registration threshold are required to prepare and submit returns under the MTD regime - under the plans announced on Tuesday (21 July) further changes are intended to be rolled out as follows:

From April 2022 – All VAT-registered businesses (whether turnover is in excess of the threshold or not) will be required to submit returns via the MTD mechanism.

From April 2023 – All those who report business income on their self assessment tax returns (i.e. sole traders and partnerships) in excess of £10,000 annually will be required to adopt the MTD for income tax process. This is intended to include income from property.

Details of the income tax MTD process and systems have yet to be announced and the implementation of both are clearly some time away, however it is important to be aware that HMRC appear to be continuing and expanding their policy of adopting digital reporting on a far wider basis. 

We will of course seek to keep you updated with further information as and when it materialises. 

If you have any questions regarding this or anything else please get in touch, and for regular updates, announcements and news please check our website (www.dsaprospect.co.uk) and make sure you’re following our LinkedIn page: https://www.linkedin.com/company/dsa-prospect-ltd