Making Tax Digital
The Government are introducing a new digital tax system, that will make administration of tax more efficient and easier. It will become mandatory for almost all businesses and landlords (self-employed, partnerships and limited companies) to use software or a spreadsheet to keep accounting records. Paper accounting records will cease to meet the requirements of tax law. There will be a requirement to submit updates to HMRC each quarter directly from accounting software, within one month of the end of each quarter.
Start dates for MTD:
- April 2019 – Vat Registered business must be compliant.
- April 2020 – Non-Vat registered business and landlords must be compliant.
Businesses operating as a Limited Company will have to be compliant from 2020 onwards but final dates have not yet been confirmed.
Micro Businesses with a turnover below £10,000 will be exempt