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Making Tax Digital is a key part of the UK's government plans to digitize the taxes. And the first step was the VAT.
From April 2019, VAT-registered businesses with a taxable turnover above the VAT threshold, are now required to use the Making Tax Digital service. It means that the business must keep all the records digitally and submit the VAT return through a compatible commercial software.
Even if your business is registered for VAT, you have to separately register for MTD.
Making Tax Digital is a key part of the UK's government plans to digitize the taxes. And the first step was the VAT.
From April 2019, VAT-registered businesses with a taxable turnover above the VAT threshold, are now required to use the Making Tax Digital service. It means that the business must keep all the records digitally and submit the VAT return through a compatible commercial software.
Even if your business is registered for VAT, you have to separately register for MTD.
IMPORTANT: Sign up for Making Tax Digital for VAT at least 72 hours before your VAT Return is due, or 7 days before if you pay by direct debit.
WHAT TO ANTICIPATE NEXT
From April 2020 - MTD for income tax and National Insurance contribution (NICs) purposes if your turnover is over the VAT threshold.
From April 2020 - MTD for income tax and NICs purposes if your turnover is below the VAT threshold.
From April 2020 - MTD for Corporation Tax (CT) purposes for everyone who pays CT.
Charities will also be exempt from the MTD for Business obligations, whether they are VAT registered or not.
UPDATED 21/3/2022
From April 2022 - MTD applies for all VAT registered businesses, even for those who are bellow the threshold registration of £85,000.
From April 2024 - MTD applies for all landlords and self employed businesses with annuall income above £10,000.
From April 2025 - MTD applies to unincorporated partnerships with an income above £10,000.
From April 2026 - MTD expected to apply for Corporation Tax.
Talk to your accountant for more details or Arrange an SCS (Skype Consultancy Service) service with us to learn more.
For more on Making Tax Digital visit GOV.UK
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ATTENTION!
This article intends to give only a general informative picture and should not, in any case, be taken as a rule. It is strongly recommended to seek a full and professional guidance specifically for your circumstances before making any decisions.
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