Making Tax Digital – implementation deadline extended

The government’s Making Tax Digital scheme has been delayed and extended, because of the coronavirus pandemic

Making Tax Digital will eventually require that businesses, landlords and individuals would record income and expenses with HMRC digitally on a much more regular basis, using approved software.

The initial plan was delayed because of Brexit preparations however, changes for VAT registered businesses with a turnover of more than £85,000 were implemented from April 2019.  Further implementation has been delayed since then.

The new dates

On 21 July the Treasury announced new dates for the scheme:

• All registered traders will need to be compliant with Making Tax Digital rules for the first return on or after April 2022
• Self employed individuals and landlords with a turnover of more than £10,000 will need to be compliant for the next accounting period on or after 6^th April 2023

What do you need to do?

• If you are a business and have not already signed up, please get in touch with your Swindells’ partner
• If you are self employed or file a personal tax return, you are likely to be affected in 2023. if you have not started to plan for MTD please give your partner a call to work out how to implement the transition
• If you are an employee paid via PAYE, earn under £10,000 or you are a pensioner you will not be affected

Swindells’ Cloud Accounting

Manage your accounts from anywhere, whilst reducing time spent on administration.  Swindells has partnered with QuickBooks to provide a simple, cost effective solution to accounting.  We also support other software such as Xero and Kashflow

If you’d like to learn more about this please follow the link below:

https://www.swindellsaccounting.co.uk/services/cloud-accounting/

For more information on the switch over get in touch with your Swindells’ partner if you have not done so already

https://www.gov.uk/government/publications/making-tax-digital