Making Tax Digital
All VAT-registered businesses are required to comply with the rules outline by HMRC scheme Making Tax Digital (MTD). If you are new to MTD this is the right place understand about this scheme comply with rules if you missed out anything.
Making Tax Digital is the important key part of the government future plans to make it simple and easy for individuals and organisations to submit their tax right and keep their record in check. The ambitions of HMRC is to become the most digitally advance tax administrator all over the globe. This will make fundamental changes to overall processes and in the future it will change the dynamics how an individual and businesses interacts with HM government to submit tax and keep records. At this stage the main objective is to transform tax administration so that it become more effective, efficient and easier for taxpayers to get their tax right.
MTD for VAT
Any registered business with a taxable turnover above the VAT threshold of £85,000 are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns. If the business is below the VAT threshold than they can join voluntarily Making Tax Digital services but after April 2022 they will be required to follow Making Tax Digital rule.
If you want to learn how to use software to file VAT returns than contact us on info@cactraining.co.uk
MTD for Income Tax
Some businesses and agents are already keeping digital records and providing updates to HMRC as a part of a pilot test but after 6th April 2023 anyone who is self-employed business and landlord with annual business or property income above £10,000 will need to follow the Making Tax Digital Rule.
MTD for Corporation Tax
The government is planning to introduce Making Tax digital for Corporation Tax in coming years but will not mandate it usage before 2026.
If you are uncertain about MTD and what it could mean for your business or if you are working professional. CAC Training (www.cactraining.co.uk) can provide you this service and training to build your confidence and skill set so you can comply with this rule in your business or as an individual.