Latest News
Updates from the Clayton & Brewill team.
Making Tax Digital: where are we now?
HMRC’s flagship Making Tax Digital (MTD) programme has seen many stops and starts over the years; it can be difficult keeping up with the continuing updates and changes. In our latest article, Nottingham chartered accountants Clayton & Brewill shares a snapshot of the latest developments.
VAT
The initial easement, meaning full digital links did not have to be in place, expired for VAT return periods starting on or after 1 April 2021. Businesses now need to be fully compliant with the new rules. We can provide guidance on what does and doesn’t constitute a digital link; in cases of doubt, please do get in touch. From April 2022, Making Tax Digital (MTD) for VAT applies to all VAT registered businesses, even voluntary registrations.
Corporation tax
Until recently, it wasn’t clear when, or even if, corporation tax would be brought within the MTD fold.
That all changed following the publication of a consultation which confirms that MTD will be coming to corporation tax, though not before 2026. A pilot of the service will be launched in 2024.
Income tax self-assessment
MTD rules apply from 6 April 2023 for unincorporated businesses and landlords with total business or property income more than £10,000 per year.
HMRC had intended to expand its pilot scheme substantially from April 2021, allowing entry to the vast majority of sole traders and landlords. This has not happened. It is now pushed forwards to April 2022, whittling away the two-year period to trial the system.
Given the considerable demands of the new rules, which involve filing quarterly summaries of business income and expenses via MTD-compatible software, plus an end of year finalisation, we recommend making an action plan for your business now. Please contact us to discuss what you need to do to comply.
How we can help
The Clayton & Brewill team can help you prepare for and keep up with changes to MTD.
We can recommend digital accounting systems that comply with Making Tax Digital and help set you up. You can then either maintain the records yourself – with support from us for reporting purposes – or we can maintain your records on an ongoing basis.