As part of the Treasury’s long-term tax digitisation plan, HMRC’s Making Tax Digital (MTD) programme will be gradually extended.
Where is MTD now?
At present, businesses above the VAT threshold of £85,000 are covered by the system, which requires them to keep digital records and provide VAT returns through software. Since it was introduced in 2019 more than 1.4 million businesses have joined the programme, submitting over 6 million returns.
What changes will there be?
April 2022
From April 2022, the programme will be extended to all VAT registered businesses with turnover below the VAT threshold (£85,000).
April 2023
From April 2023, it will apply to taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually.
What do the Treasury say?
Visit GOV.UK to see the full press release.
Contact Us
Please contact us to find out how the above applies in your circumstances, how you can reduce your tax liabilities and maximise your tax efficiency.
Please note that the above is for general information only and does not constitute financial or tax advice. You should not rely on this information to make or refrain from making any decisions. You should always obtain independent professional advice in respect of your own situation.
