News

The rules for MTD for Income Tax

Making Tax Digital (MTD) will fundamentally change the way businesses, the self-employed and landlords interact with HMRC. The regime will require businesses and individuals to register, file, pay and update their information using an online tax account.

The regime started in April 2019 for VAT purposes but only for VAT registered businesses with a turnover above the VAT threshold. The further rollout of MTD will start in April 2022 when MTD will be extended to all VAT registered businesses with turnover below the VAT threshold of £85,000.

This will be followed one year later, from 6 April 2023, when MTD for Income Tax is introduced. The rules will apply to taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually.

Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the MTD service for Income Tax. Under the pilot, qualifying landlords and sole traders (or their agents) can use software to keep digital records and send Income Tax updates instead of filing a Self-Assessment tax return.

Every 3 months users will electronically send a summary of their business income and expenses to HMRC. At the end of their accounting period, users will need to finalise their business income and expenses and submit a final declaration (replacing the Self-Assessment tax return). This is where you will also be able to submit information about any personal income and claim reliefs.

Source: HM Revenue & Customs Wed, 30 Sep 2020 00:00:00 +0100

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

> SIGN UP FOR THE NEWSLETTER
> LOGIN

Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC
FT
BBC
VEALE WASBROUGH VIZARDS
CESP
PRACTICE INDEX
SIMCOMM ACADEMY

More Local:
FOOTPLATE EXPERIENCE
ANGLEBURY PRESS
OFFCAMBER.CO.UK