It has finally been confirmed, despite the Covid19 pandemic, that MTD (Making Tax Digital) will commence for ALL VAT registered businesses from 2022 and for Income Tax (self-employed people, businesses, landlords and directors) from 2023.
It is time to embrace digital if you have not already.
This means in short… You will need to keep digital records and use software to update HMRC QUARTERLY through MTD.
From April 2022,
If you were previously excluded from the list of MTD for VAT – do not assume that is the case from next year with all UK VAT registered businesses, charities and micro entities having to adhere to the MTD requirements. If your income is over the £85,000 threshold then MTD will apply.
Some smaller voluntarily registered businesses may decide to deregister instead of complying with MTD. Deregistration can however also trigger a VAT cost due to the rules about assets on hand, so advice may be needed.
From April 2023,
MTD will apply to you if you are self-employed, A Director, Small unincorporated business, Or A landlord with business income over £10,000 per annum and are liable for Income Tax.
For Corporation Tax
The government will provide limited companies and businesses with an opportunity to take part in a pilot for Making Tax Digital for Corporation Tax and will not mandate its usage before 2026.
We are already seeing many “Old Skool” Accountants making this year their last in the world of Accountancy.
In turn we are seeing an influx of customers and the requirement for Software being a modern digitally ready firm here at Busy Books.
Our last KashFlow Software demo, held in February, was well received – business owners could see the benefit of having digital software not only for MTD compliance but for so many other useful everyday tools –
- Quoting for work
- The ability to send and chase customer invoices and payments
- Keep a track of expenditure
- Even have a rough idea of your tax bill before bringing your accounts to us!
- Keep in touch with us more regularly with online up to date software we both have access to
SO…
If you are currently using a non MTD compliant software, Excel sheets, Day & Cashbooks or Paper records – NOW IS THE TIME TO change your processes.
You can request more information from Busy Books award winning, organised, personal team of Bookkeepers & Accountants and discover what we can offer with the aid of our chosen KashFlow Software here;
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Any thoughts, suggestions, or questions
Email grant@busybookswestbury.co.uk
Tel 01373 229589 / 01380 830205