Making Tax Digital (MTD)
HMRC have introduced Making Tax Digital, which aims to make tax administration more effective, efficient and easier for taxpayers to get their tax right.
It means that paper records will no longer meet the requirements of tax law. Instead, all records must be kept on digital software which is MTD compliant. This software is then used to submit all required information to HMRC.
VAT registered businesses with a taxable turnover over the VAT threshold of £85,000 must now be submitting their quarterly VAT returns this way. VAT registered businesses with a taxable turnover below £85,000 have until April 2022 to comply. All submissions will now be made quarterly, rather than annually.
The rules for submitting income tax returns for self employed businesses and landlords with annual business or property income above £10,000, will come in from April 2023.
I am using MTD compliant software, so I am ready to help you to make the necessary changes to comply with these rules.