Making Tax Digital
What is 'Making Tax Digital'? This is a Government scheme which has been introduced to make it easier for both individuals and businesses to get their tax right by asking them to keep digital tax records and submit tax information digitally to HMRC.
Is it mandatory?
It is currently only mandatory for the majority of organisations that pay VAT – this came into force on 1 April 2019 and the exceptions (see below) will have to conform by 1 October 2019.
The Government have advised Making Tax Digital will not be mandatory for taxes other than VAT until at least April 2020.
Making Tax Digital for VAT
Anyone with a taxable turnover of more than £85,000 and not in a ‘deferral group’ – as advised by HMRC - had to follow the digital rules from 1 April this year. Deferral groups include organisations like local authorities, trusts and public corporations and they will need to keep digital VAT records and submit returns digitally from 1 October 2019.
Making Tax Digital for Income Tax
As part of a pilot scheme some individuals and businesses are already keeping and supplying digital records to HMRC. Self-employed individuals and landlords can choose to do this too, instead of filing a Self-Assessment tax return.
At Jerroms we have a dedicated tax department that will help you through the whole process, giving you expert guidance, preparing all the relevant information and submitting it on time.
Click here to find out more about our tax consultancy service