Making Tax Digital is on its way
Making Tax Digital is on its way
The government launched the new Making Tax Digital (MTD) initiative in order to help self-employed people to keep on top of their tax more efficiently.
The MTD scheme will require self-employed businesses and individuals with annual business or property income over £10,000 to maintain their records digitally and to submit quarterly figures on their business income and expenses to HMRC. This will replace the need to file an annual self-assessment form. A final return with any other income, gains or reliefs will be needed to confirm that all is correct.
The process will allow those registered as self-employed to view their income tax status as they go, enabling them to view their tax return throughout the year. There will be no change to the income tax payment deadline.
There is a lot to think about for those self-employed individuals and businesses to ensure they are fully prepared and organised to submit this information on a quarterly basis.
The new system will be implemented from April 2024. Partnerships will have a little longer as they will not be required to join until April 2025.
The deadlines for submission are as follows:
|
Quarter |
Period |
Deadline |
|
1 |
6th April – 5th July |
5th August |
|
2 |
6th July – 5th October |
5th November |
|
3 |
6th October – 5th January |
5th February |
|
4 |
6th January – 5th April |
5th May |
The tax liability due will need to be paid by 31st January of the following year (as is currently).
If you would like further advice on the new Making Tax Digital scheme, please get in touch with the friendly Clear Vision Financial Management team. You can call us on 01794 330025 or email us
