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 £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 £85,000 pa.
April 2019 for income tax and NICs purposes if your turnover is below the VAT threshold of £85,000 pa.
April 2019 for VAT purposes for everyone who is VAT registered.
April 2020 for Corporation Tax (CT) purposes for everyone who pays CT.
In the next video we look at the Making Tax Digital timescales for individual taxpayers.