Making Tax Digital (MTD) is HMRC’s modernisation of the UK tax system. It requires businesses to keep digital records, send in returns every quarter plus make an annual submission and declaration.
You might have already heard about this as HMRC have been advertising it for several months now. You might have also heard that it was not in the recent Finance Act. However, it is believed that this is just a timing issue due to the forthcoming General Election.
Who is affected by MTD?
Self employed individuals, partnerships, limited companies and property landlords will all be required to start using the new digital service.
The precise start date will depend on the type and size of your business or property income. It could be as soon as April 2018.
Only businesses and landlords with turnovers under £10,000 are exempt from these requirements.
Businesses will have to use approved software for their record keeping and accounting. Businesses will need a reliable internet connection and a facility to store electronic data.
What do I need to do?
You can be assured that Barringtons are on top of these changes, and can advise you of your individual requirements. We have invested heavily in the approved software, and are co-ordinating our efforts to match the due dates for each business.
We will therefore be in contact with you well in advance of your due date, and will discuss the options with you.
If you wish to know more in the meantime then please speak to your usual Barringtons contact.