The story so far
The Government’s Making Tax Digital (MTD) initiative means an increasing number of businesses will need to keep digital accounting records and submit their returns to HMRC online. The aim is that once the changes are in place that it will be easier for business to keep on top of tax affairs and get them right.
From April 2019 VAT registered businesses with a turnover of over £85,000 a year must keep records digitally and submit their VAT returns using MTD software.
The next step
The next MTD deadline of April 2022 will apply to VAT registered business with a taxable turnover of below £85,000 per year, these businesses will be required to follow Making Tax Digital rules for their first return starting on or after April 2022. In the coming months we will contact our clients who fall into this group support them through this transition.
If you are below the VAT threshold you can voluntarily join the Making Tax Digital service now. We can help you transition to cloud accounting software that is compatible with MTD rules.
Making Tax Digital for Income Tax – Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for income tax from their next accounting period, starting on or after 6 April 2023. We will highlight what this means for businesses and landlords in a future edition.
Making Tax Digital for Corporation Tax – The government has published a consultation on the future design of Making Tax Digital for Corporation Tax and welcomes views from companies and other organisations to Corporation Tax, agents, professional bodies and software developers. The government will provide businesses with an opportunity to take part in a pilot for Making Tax Digital for Corporation Tax and will not mandate its usage before 2026.
If you are an existing client of Foxley Kingham, FoxKash or GKP you need not worry, your account manager will contact you at the relevant time and work you through the transition to digital filing. If you are not an existing client and would like to speak to us about MTD digital and your business, the experts at FoxKash are on hand to have a free chat with you – find out more about FoxKash and contact the team here.
FoxKash offers cloud accounting, bookkeeping and VAT affairs support for busy business owners – FoxKash is a new, independent service from Foxley Kingham designed to give our clients expert online bookkeeping support. Sitting alongside our established offering, FoxKash is a standalone business with its own fee structure that offers expert online accounting at an affordable price.