Making Tax Digital (MTD) is here

Making Tax Digital (MTD) is here

Making Tax Digital (MTD) is already here for VAT traders who are over the vat registration threshold.  Starting April 2021 all VAT registered traders will have to utilise MTD compatible software to file VAT returns for periods starting on or after 1 April 2022. Businesses are required to keep the VAT record in digital form. Due to changes being made by HMRC in the transition period we are recommending that all VAT registered businesses sign up for MTD as soon as possible, if they have not already.

Additionally from April 2023 it will be mandated for Income Tax. This means that the self-employed should start considering a pathway for a cloud bookkeeping or at least a spreadsheet solution. It may worth exploring what innovative new apps may be available. These may include data and document collaboration tools, and bank automation apps that ingest live bank transactional data and automatically categorise it.

MTD for Income Tax will also be needed for landlords as well as businesses. A better pathway might be a simple income and expenditure app, like a digital data collection tool – or it might be to start using a spreadsheet to record each income and expense transaction.

If you are not maintaining some form of digital recording of your income and expenditure we recommend discussing with your usual contact as soon as possible so that you are ready for MTD for Income Tax.

To find out more about our Making Tax Digital services please visit our MTD page.

About the author

Andrew is the Operations & Business Advisory Director at Ward Williams Ltd having partner responsibility for a portfolio of owner managed business clients covering a wide spectrum of different industries, and which are primarily based around the Weybridge and Bracknell areas. He oversees the Business Services department processes for the timely delivery of year end accounts, tax compliance and company secretarial services.

He has extensive experience of providing accounting, VAT and business tax advice tailored to individual and corporate needs. Andrew can assist in identifying and delivering strategic tax planning solutions. As he acts for a number of property clients, this is one area of specialist interest. He also provides financial and accounting solutions to start-up's, owner managed enterprises and small groups.

Andrew’s primary goal is to provide a prompt and client focused service delivering tangible benefits through providing solutions to client problems and through identifying opportunities to assist in the growth and development of their business.