If you are a landlord, self-employed or a business director, there’s a new acronym doing the rounds that you will want to be aware of – MTD (Making Tax Digital).
Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs – spelling the end of the annual tax return.
HMRC have announced that businesses, self-employed individuals and landlords operating at profits that are chargeable to income tax and class 4 NIC will be expected to commence using HMRC’s digital service from April 2019 (updated following the 2017 budget announcement). For those registered for VAT the start date will be April 2019 and for businesses paying corporation tax commencement will be April 2020.
So what exactly will MTD mean for you and your business?
- Tax will be simplified and held in a centralised online system;
- As a landlord, self-employed individual or business owner, you will need to submit summary financial data to HMRC more regularly than annually. This will mean a quicker turnaround in processing and collecting tax owed/due to HMRC;
- Tax data will be held in one place – including liabilities and entitlements.
HMRC continue to modify key elements of the MTD plan following feedback received during the consultation process. Here’s a useful link to the consultation outcomes.
If the above will apply to you and you haven’t already done so, it is advisable to set up your online digital tax account now… You can do that here
If you want to talk to us about your requirements for a bookkeeper or accountant, we offer completely free of charge business consultations so we can get to know each other and see if The Business Hut is a good fit for your own business.
We’ll keep you posted!
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