Making Tax Digital – A New Revolution!
HMRC aims to join up its internal systems and create one online account for each taxpayer, the digital account will allow taxpayers to view all their payments and offset overpayments in one tax year against underpayments in others. Making it possible to view your entitlement to state pension, review your personal tax code and make any changes easily online.
From April 2018, Making Tax Digital will also impose new quarterly filing deadlines for business and landlords, which will be phased in gradually – there will be exemptions for businesses with low turnover. The current timetable, extended by the government in the Budget 2017 is as follows:
- April 2018 – Income Tax, for businesses, trusts, self-employed people and landlords, over the VAT threshold.
- April 2019 – Income Tax for business under the VAT threshold.
- April 2020 – Corporation Tax, Income Tax for partnerships with turnover of more than £10m.
If you’re self-employed, a landlord or have a business that is earning less than £10k a year, the government has said you are exempt from this new law, however it is still your choice whether you want to enrol to have an online tax account.
By keeping accounting records online, it allows you to take control of your businesses finances, therefore providing you with a real-time view of your financial positions – it’s easy to use too! There will be direct links to your bank accounts and useful apps to make inputting your expenses a breeze.
Making Tax Digital is coming and we are here to help, with online accounts packages which are tailored to your requirements. Why not take advantage of going digital… join the revolution.
If you want to find out more, from HMRC themselves, please click here. If you have any questions or concerns on Making Tax Digital please don’t hesitate to contact us on the details below.