Making Tax Digital – HMRCs digitalisation strategy – is coming in over several years:
- Making Tax Digital for VAT – from April 2019
- Making Tax Digital for Income Tax – from April 2024
- Making Tax Digital for Corporation Tax – “not before 2026”
These dates, and all the Making Tax Digital requirements, are mandatory for businesses and/or landlords
Making Tax Digital for VAT
MTD VAT came in for most VAT registered businesses from April 2019 – for businesses with voluntary VAT registration, the mandation date was April 2022.
The requirements are to:
- Keep your accounting records Digitally and have Digital Links within differing parts of your records
- Submit VAT returns via your software – desktop or app – connected to HMRC via API. You cannot submit via HMRC website portal any longer
Making Tax Digital for Income Tax
MTD ITSA comes in from April 2024 for:
- Sole Traders and Partnerships
In both cases there is a £10,000 turnover exception.
The key obligations are to:
- Keep Digital Records
- Submit Quarterly Interim Returns to HMRC digitally one month after quarter end
- Submit final returns to HMRC by 31 January after the end of the tax year
Making Tax Digital for Corporation Tax
We don’t know anything about this yet, other than its not coming in until 2026 at the earliest.
Position Statement on Prospective Fee and Service Changes for Making Tax Digital for Income Tax
In March 2022 we published a Position Statement on how Making Tax Digital for Income Tax may effect the services we offer, and our charges.
Making Tax Digital for Income Tax – Position Statement on Prospective Fee and Service Changes
This is for information and to give a direction of travel – nothing is yet finalised. However we are planing ahead for April 2024, to ensure we and our clients are prepared.