Making Tax Digital Requirements
Are YOU Ready?
If you need help with this, please contact us now to prepare you or your company click here (a link to contact us.)
- There are some exemptions for charities and similar organisations and there will be a turnover cut-off below which businesses will not have to comply with the requirements set out below, but in general: Landlords be aware if you earn over 85k you will need to be ready by 2018.
- Businesses must keep digital accounting records. There will be rules about what these records must include by way of detail.
- Businesses must analyse their expenses at a minimum under the headings used in the current self-assessment return.
- Businesses must update HMRC with their income and expenses at least once every three months via a software that complies with MTD.
- Once a year the accounts for the business must be finalised by adding year-end adjustments and capital allowance claims. Such adjustments are optional for the quarterly updates. The time given for this will vary depending on the client?s accounting date, but will be the usual 31 January deadline for clients with a 31 March accounting date.
- Taxpayers will enter details of their income from other sources onto their personal tax accounts (PTA), or check the amounts shown on their PTA are correct.
- Unincorporated businesses will start reporting under MTD for the first accounting period starting after 5 April 2018. Very large partnerships will be given more time to adjust, as will some small businesses above the exemption threshold.
- From April 2019, businesses which are registered for VAT will also have to make their VAT returns through their MTD software.
- Limited companies will join MTD from April 2020