Making Tax Digital: If you’ve not been affected by the rollout yet, your time is coming
If you don’t know the history of Making Tax Digital (MTD), in essence, it aims to make tax administration more efficient and accurate. Once the rollout is complete, you will be required to fill in your tax return digitally, no more paper! MTD is about giving people the tools to prevent avoidable mistakes and, using specially adapted software, allowing information to be sent direct to HMRC.
The first phase of MTD began in April 2019, this was MTD for VAT, for VAT-registered businesses with a taxable turnover above the £85,000 threshold. All other VAT-registered businesses will need to follow the rules from April 2022, or they can join MTD voluntarily now.
Time flies… help your accountant out!
The next key date on the current schedule is 6 April 2023. For self-employed taxpayers, and those with an income from property over £10,000, that’s when MTD for Income Tax will be mandated for you.
MTD is about creating a ‘real time’ system, so taxpayers can see an estimate of how much tax they’ll owe as they go along. Summaries of your income as well as expenditure will need to be sent to HMRC quarterly to calculate your projected bill.
If you work with a specialist dental accountant – and to optimise both your business and personal finance, you should be – help them by being prepared in the lead up to MTD for Income Tax. Now could be the time to look at cloud-based accounting – it is simple, secure and can save on space as well as stress. You might decide to sign up to the pilot scheme, ahead of the 2023 deadline. A specialist dental accountant can also help you explore what you could, or should, be doing to boost your income, and reduce your tax bill. Figurit are chartered accountants with years of experience supporting dental clients. They will be part of your team and work alongside you, not just for you.
MTD is happening – so get organised now! Time flies so do all you can to avoid any last-minute panic as the key dates get closer.