Making Tax Digital expansion.

1st April 2022 was the VAT Making Tax Digital (MTD) deadline, which required businesses to keep all VAT records in a digital format.

From this date, all VAT-registered businesses – including those that are voluntarily registered – have to store their VAT accounting records digitally, using compatible software.

From 6th April 2024, Income Tax Self Assessment (often shortened to Making Tax Digital for Income Tax, or MTD for ITSA) will go fully digital, in fact ending the need to submit annual tax returns.

 Businesses, self-employed and landlords with annual business or property income above £10,000 will need to follow new rules for digital reporting and record keeping for income tax and use compatible software.

The new process will mean:

• 4 Quarterly updates of income and expenditure per annum

• A 5th return which includes end of period statements to finalise business profits

• A 6th final return which declares any other income, gains and reliefs

There will be no change to tax payments and the deadlines for these.

iAccounting Services can help with choosing the right software solution, software set-up and ongoing accounting support.