15 October 2020
The government’s purpose behind making tax digital is to set out an electronic system to make it easier for businesses and individuals to keep tax on the top of the affair and get tax right.
Are you ready for it? Or not sure what it means for you?
Here is what you should know.
Under MTD for income tax, people subject to income tax on the profits of their profession, property business, trade, or vocation will need to maintain their accounts electronically— using a spreadsheet or software. They also need to file quarterly returns to HMRC along with the details of their expenditure and income. Besides, they also need to submit any other information specified by HMRC.
Under MTD for income tax, people subject to income tax on the profits of their profession, property business, trade, or vocation will need to maintain their accounts electronically— using a spreadsheet or software. They also need to file quarterly returns to HMRC along with the details of their expenditure and income. Besides, they also need to submit any other information specified by HMRC.
You may see the following changes in the way you store and apply tax returns after MTD:
The changes mentioned in the MTD is applicable for an extensive range of taxpayers from selfemployed to business people to landlords. It is also applicable for individual taxpayers.
MTD is not mandatory for businesses with annual sales under £10,000. However, they can opt to if they wish for.
As mentioned above, to be in scope, the total property or business income should be above £10,000 per year. This threshold applies to total gross income and not profit.
Individuals will not have to follow the MTD in the following scenarios:
In any of the cases as mentioned above, you can apply to HMRC to claim an exemption.
It helps you to:
Understand your tax affair with a complete picture of your business in your digital account.
Are you looking for taxation services in Wormley or Walthamstow? Or
Have any questions about MTD? Click here, and we
would be happy to help you.