Making Tax Digital (MTD) is HM Revenue and Customs project designed to reduce tax evasion. Its ultimate goal is to require all businesses, whether they be Limited companies, partnerships or the self-employed, which have income of £10,000 or more to maintain their records digitally. The term business also includes individuals who own rental property with gross rental income in excess of £10,000.
In addition to maintaining records digitally, businesses will be required to submit certain financial information electronically to HM Revenue and Customs on a quarterly basis within 30 days of each quarter end.
HM Revenue and Customs preferred route would be for businesses to use accounting software to maintain their digital records, although currently the use of excel spreadsheets is permissible.
The first stage of the MTD project impacts on VAT registered businesses which have sales income in excess of £85,000.The requirement to maintain records digitally for such businesses commenced on 1 April 2019.
For further assistance in this matter, or any other issues relating to Making Tax Digital please phone Shacklefords Chartered Accountants on 0121 448 7466 or e mail firstname.lastname@example.org