Making Tax Digital (MTD)
As previously noted there’s a revolution on its way (slowly!). First announced in the April 2015 Budget, ‘MTD’ will affect us all. The timing has been significantly delayed. So far it has happened for VAT registered businesses above the VAT threshold (£85,000) and we expect the next wave of MTD to affect VAT registered businesses with a turnover below £85,000 for the first returns starting on or after April 2022.
At present, Self Employed and Landlords with income above £10,000 will be required to follow MTD rules from the accounting period starting on or after 6 April 2023.
Further details to follow…
The Government Gateway is Integral to Making Tax Digital
You may have heard the expression ‘Government Gateway’. It is becoming more and more a feature of everyday life! If you haven’t registered then we recommend that you do so – it’s good to be prepared!
Follow the link here: gov.uk/personal-tax-account/sign-in/prove-identity
Just to be clear, we deal with your Self Assessment (and where applicable) Company Corporation Tax through our own Agent Government Gateway but we cannot set up your individual Gateway. There are a number of areas for which it is required. For example:
Reporting UK residential property sales (see above!)
- Applying for time to pay your tax liability
- Accessing your Personal Tax Account
- Submitting Making Tax Digital VAT Returns
- Submitting Making Tax Digital Rental Income Returns (to follow)
- Applying for your State Pension forecast
The comments above are brief highlights and each item is subject to change, please note the full chart of Rates and Allowances on our budget pages and remember – there is always more to it than meets the eye so please contact us before taking or refraining from action.