When Is Making Tax Digital?
Making Tax Digital (MTD) is the single biggest innovation in tax reporting businesses have seen. Whether you have decided to embrace it or hate it, uptake of the scheme is now mandatory for almost all companies.
What is Making Tax Digital?
All businesses with an annual turnover of £85,000 or more will be required to register, file, pay, and update their VAT information online each quarter, using specialist accounting software and HM Revenue & Customs’ own digital tax portal.
Do I have to use Making Tax Digital?
Only businesses with a turnover above the VAT threshold (£85,000) have to use Making Tax Digital initially. They have been required to report VAT digitally from April 2019, and will likely need to report Income Tax or Corporation Tax digitally from April 2021 at the earliest. This later staging date is likely to effect the majority of businesses, but HMRC is yet to release a full outline of the new rules in this area.
Businesses earning below the threshold can choose to “opt in” whenever they feel ready.
Work out when you have to go digital by using our handy flowchart below.
Watch our video: Are You Getting Ready For Making Tax Digital?
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