HMRC is phasing in its landmark Making Tax Digital (MTD) regime, which will ultimately require taxpayers to move to a fully digital tax system, beginning with MTD for VAT. Since 2019, businesses with a turnover above the VAT threshold (currently £85,000) have been required to keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software. From 1 April 2022 all VAT registered businesses will be required to fulfil their obligations under MTD.
Self-employed businesses and landlords with annual income over £10,000 will be brought into MTD from 6 April 2023. They will need to report their business income quarterly with a final declaration at the end of the year. This is intended to replace the current self-assessment system.
Your BrighterThinking Next Steps
This is mandatory over the coming years for those business and individuals mentioned. Our advice however would be to digitise early, you will be compliant for when your time comes and will benefit from the many advantages of online accounting. Examples are around efficiency and visibility through automated processes and live data on the go. Your advisor at Menzies will have insight too for more proactive advice to help you and your business.”Oliver Finch – Menzies Outsourcing Director
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Menzies Private Client Team
Personal tax planning can be complex. We would always recommend that you seek professional advice when undertaking a review to ensure all changes are processed and managed effectively. Please do speak with your Menzies contact who will be delighted to meet with you to discuss ideas, opportunities and the appropriate action.