How will Making Tax Digital impact my business?

Since April 2019 for VAT and not before April 2024 for personal tax and April 2026 for corporation tax, businesses and landlords will be enrolled into keeping digital accounting records and will have to file quarterly figures with HMRC.

The UK tax system is undergoing a digital revolution, with far-reaching consequences for businesses, landlords and taxpayers.

The government wants it to be fully digital, with businesses and landlords having to file their accounts online once a quarter. The exact timetable for this to happen for all taxes remains unclear, and the reforms will not attempt to simplify the tax system; only the way it is administered.

Individual taxpayers with straightforward tax affairs will no longer have to file an annual tax return, but will instead have to confirm their income details in an online Personal Tax Account pre-populated by the tax office from information it has gathered from third parties, such as banks, employers and other government departments.

Bishop Fleming can advise you on the best and most cost-effective way to meet the challenge ahead to make your life easier.

Free software with limited functionality will be available for taxpayers with straightforward tax affairs, though commercial accounting software with more functionality will be preferable for many. Businesses will also be able to use spreadsheets if they wish, but will have to ensure they meet the necessary requirements.

Please contact a member of our business tax team to find out how we can help you and your business or visit our Making Tax Digital area.