Skip to main content Skip to footer

Making Tax Digital with Larking Gowen

The Government's plan to make tax digital will affect every individual taxpayer and business. Some changes have already begun, and we recommend you get engaged as early as possible to get used to the new system.

In essence, 'Making Tax Digital' is designed to get all tax records online and up to date, so they are accessible to both taxpayers and HMRC. Quarterly submissions of accounts will then be made to HMRC to give a snapshot of business income and expenses.

Businesses with a turnover above the VAT threshold have been mandated to use making tax digital for business (MTDfB) system from April 2019 to meet their VAT obligations. Businesses with a turnover below the VAT threshold are not required to use MTDfB from April 2019 but can choose to do so.

HMRC originally announced that MTD would be extended to Income Tax Self Assessment (ITSA) with effect from April 2024 where an individual’s turnover exceeded £10,000. However, in December 2022, it was announced that the introduction of MTD for ITSA was delayed until April 2026. Only those with combined turnover from business and property income exceeding £50,000 are caught by these rules from April 2026 and those with income exceeding £30,000 are caught by April 2027.

Whether you are an individual, a partnership, an incorporated company, or a family trust, Larking Gowen offers a full service from looking after your digital accounts to giving advice on what steps to take to get in line with the new system.

The services and information we provide includes the following: 

  • Timetable of actions required for each type of business
  • Setting up your digital account
  • Advice and training on software, including spreadsheets
  • Managing your digital account
  • Compliance with the new requirements

East Anglian Widgets Ltd – a trading company

Currently the company files quarterly VAT returns and an annual corporation tax return.  It operates a payroll scheme for its employees.

Making tax digital will mean that from 1 April 2019 the company will need to maintain details of its VAT transactions on an app or software which can make quarterly submissions to HMRC.

By 2020 the company will need to maintain all of its business records on an app or software. Its digital tax account will contain all of its corporation tax, VAT, and payroll records in one place.

The company will have the option to pay all of its taxes (corporation tax, VAT etc) in smaller more regular payments.  It will also be possible to offset a refund of one type of tax against another.

Ben Greves

Ben Greves

Senior Manager

George Ager

George Ager

Assistant Manager

John Cunningham

John Cunningham

Senior Manager

Matt Hudson

Matt Hudson

Assistant Manager

Tim Angell

Tim Angell

Manager

Share this page

facebook logo   X logo   Linked in logo

Get in touch

T: 0330 024 0888

Email us

Newsletter

Sign up to receive the latest news from Larking Gowen

facebook logoX logoLinked-in logorss logo

Cookie Notice

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
Find out more here