4th April 2017
HMRC has launched the Making Tax Digital (MTD) pilot which will allow individuals and businesses to trial digital tax reporting.
Businesses will be able to test the digital system by:
- using accounting software to record income and expenses for the quarter they join
- sending summary reports directly from digital records quarterly
- going paperless.
Based on the information reported, businesses will receive an estimated tax calculation.
MTD will require most businesses, self-employed people and landlords to use digital software to keep tax records and update HMRC on a quarterly basis.
The digital service will begin from April 2018 with businesses and landlords with an annual turnover below the VAT threshold exempt until April 2019.
Those with an annual turnover of less than £10,000 will not need to make quarterly updates online.
Contact us to discuss how Making Tax Digital may affect you and your business.