MTD - Making Tax Digital

As you may already be aware, HMRC is rolling out the next phase of Making Tax Digital (MTD), a government initiative that aims to implement a fully digital tax system in the UK. 

Form April 2022, all VAT registered businesses are required to submit VAT using a commercial software.

From April 2024, self-employed business owners and landlords with annual business and/or property income above £10,000 will need to follow the rules for MTD for Income Tax Self Assessment. As a sole trader, you’ll need to comply when the new legislation rolls out. This will mean a change to the way we currently work together.

Although 2024 might seem like a while away, we want to get you prepared for MTD for ITSA sooner rather than later. In order to remain compliant with HMRC’s rules and the shift from annual to quarterly returns, you will need to start using accounting software ideally from 6th April 2023.

More details are available on HMRC official website for MTD - VAT.

More details are available on HMRC official website for MTD - ITSA.