Making Tax Digital
Most businesses, self-employed people and landlords will be required to manage their tax affairs digitally by 2020. This will involve updating HMRC at least quarterly via their digital tax account. The new measures will not apply, however, to individuals in employment or to pensioners, unless they have a secondary income of more than Â£10,000 per annum. But what are the timescales and when will it affect you?
April 2018 for income tax and National Insurance Contribution (NICs) if your turnover is over the VAT threshold of Â£85,000 pa.
The government is transforming the tax system and making it digital. The aim is to reduce burdens for taxpayers and build a transparent and accessible tax system. This new system is called Making Tax Digital.
The plan is that by 2020, businesses and individual taxpayers will be able to register, file, pay and update all their information online. They will be able to do this at any time of day or night, all year round.
So what does Making Tax Digital (MTD) mean for you?