27 07 2020
UK Confirms Plans To Expand Making Tax Digital
The UK Government has announced plans to expand its Making Tax Digital project from 2022
Making Tax Digital introduced new reporting obligations on value-added tax registered persons, requiring them to keep their records digitally (for VAT purposes only) and provide their VAT return information to HM Revenue and Customs (HMRC) through MTD-compatible software. The regime was introduced from April 1, 2019.
The UK Government has now announced that VAT-registered businesses with a taxable turnover below GBP85,000 (those who have voluntarily registered) will be required to follow Making Tax digital rules for their first return starting on or after April 2022.
The Government has also announced plans to roll out MTD for income tax for accounting periods starting on or after April 6, 2013. This will impact businesses, self-employed people, and landlords.