Making Tax Digital - Digital Tax Services Explained
Many of you may have heard about some of the changes that are being made to the tax system, or you may be aware of the term "Making Tax Digital". If you're a subscriber to my Newsletter, then you'll be up to date with all of the latest changes already and this page will be more of a reference for you.
As always with clients, the information given here is not to form any specific advice for you or your business. This is purely for reference. For more detailed advice on how these changes may impact your business or you, then please contact me, or call to arrange a meeting.
As always with clients, the information given here is not to form any specific advice for you or your business. This is purely for reference. For more detailed advice on how these changes may impact your business or you, then please contact me, or call to arrange a meeting.
What is Making Tax Digital?
Making Tax Digital (MTD) is the most fundamental change to the administration of the tax system for at least 20 years.
The essential elements for businesses and landlords are:
Many clients will have noticed that we have been gradually moving to a more cloud and software based approach over the last few months to ease the administration into the new processes. This will be accelerated over the coming months. |
Introduction - Making Tax Digital |
When Does it Start?
Individuals can already access their Digital Tax account which will start to be pre populated with things like salary information and P11D information. You may already have experience of this.
Your buisness’s start date for MTD depends on the size and structure of your business and your accounting year end. We will discuss your specific start date with you, but in general: Income Tax (self-employed, partnerships, trusts and landlords who compete self assessment tax returns):
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Making Tax Digital - When & How? |
MTD pilots are starting from April 2017 and we will contact you separately if these might be helpful for your business.
VAT: From April 2019 all VAT registered businesses (including limited companies) will have to file their VAT returns directly from accounting software. The current online VAT return will cease to be available.
Corporation Tax (limited companies): MTD will not become mandatory for corporation tax until at least April 2020.
VAT: From April 2019 all VAT registered businesses (including limited companies) will have to file their VAT returns directly from accounting software. The current online VAT return will cease to be available.
Corporation Tax (limited companies): MTD will not become mandatory for corporation tax until at least April 2020.
What are the Exemptions?
The smallest businesses and landlords with gross income of less than £10,000 will be exempt (if you have a small trade and a buy to let, you need to add gross receipts together to decide if you need to comply).
Also exempt are those who are not able to engage digitally for religious reasons or due to a factor such as age, disability or location (eg, no availability of broadband).
Also exempt are those who are not able to engage digitally for religious reasons or due to a factor such as age, disability or location (eg, no availability of broadband).
What do I need to Know?
The action required depends on the size and structure of your business and how you currently keep your records – we will need to discuss your transition to MTD with you.
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Making Tax Digital - In the Know |
Still Have Questions?
You're not alone. If you still have any questions or concerns about Making Tax Digital or if you're unsure about how this may impact you, then please get in touch with me. Contact me through the website, or call me to discuss or arrange a meeting.
© Nigel Gorski Consulting 2016, Nigel Gorski BA ACA (Sole Practitioner), c/o TNT Marketing, North Vale Mill, Brighouse, HD6 4DJ
Telephone: 07980 270610
Telephone: 07980 270610
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