By Lyndsey Hall
Since 2019, the vast majority of VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) have been mandated to keep digital VAT records and send returns using Making Tax Digital (MTD)-compatible software.
From April 2022 these requirements will apply to all VAT-registered businesses.
MTD for Income Tax Self-Assessment gets a launch date
It has also been announced that MTD for Income Tax Self-Assessment (ITSA), which was originally intended to start in 2018, will finally be introduced from April 2023 for unincorporated businesses and landlords with total business or property income above £10,000 per year.
Most businesses will have 2 years to prepare and test the service voluntarily prior to its introduction, much like the beta test HMRC ran for the original software.
Take a look at our MTD resources for more details on the government’s move towards digital tax reporting:
Have you used the digital tax system yet? How have you found it so far? We’d love to hear from you, leave a comment below or let us know on Linkedin.