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