Out with the traditional tax return: In with 'Making Tax Digital'
Following the Spring Budget in March 2017 we have now received confirmation from the Government that ‘Making Tax Digital’ (MTD) will be introduced in April 2018 for all landlords, sole traders and partnerships with a turnover in excess of £85,000 per annum.
A little relief was announced for smaller businesses and landlords with turnover between £10,000 and £85,000 with the commencement date for making tax digital being deferred for 12 months until April 2019.
Businesses who fall into the MTD regime will need to keep digital records of their turnover, expenses and profit and these records will then need to be submitted to HMRC on a quarterly basis via HMRC’s online portal. Ten months after the year end they will need to provide details of their year-end activity to HMRC.
MTD will be an enormous change for all taxpayers, but particularly so for those who have always kept their records manually and give their records to their accountant once a year. Businesses and landlords will be required to use accounting software of some sort and keep records in real time.
Limited companies will be brought into the MTD regime from 2020.
In their presentation, Victoria Dadswell, Senior Tax Manager and Judith Dugale, Corporate Services Director at Moore and Smalley will explain the forthcoming changes regarding Making Tax Digital and set out some of the ways that business owners can prepare ahead of the introduction of the new rules.
This free briefing is brought to you in partnership with Moore & Smalley