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Making Tax Digital (MTD) was initially introduced for VAT-registered businesses (with turnover above of £85,000) on 1st April 2019 and then it was extended to all VAT-registered businesses from April 2022 regardless of their turnover.
MTD for income tax will be compulsory from April 2026 based on the certain level of taxpayer income from their property rental income and self-employed income. MTD on corporation tax will also be followed by the UK government as well.
MTD for VAT:
MTD for income tax:
Making Tax Digital aims to make tax reporting more effective, efficient, and straightforward for taxpayers. At Stan Lee Accountancy Ltd, we are prepared to assist you with MTD for both VAT and Income Tax.
We provide complimentary assistance for registration with HMRC. Our services encompass widely used and accessible software solutions, including IRIS, Xero, Sage, and other options tailored to meet your specific requirements. Get in touch with us for your initial free consultation and let’s find how we can help on your MTD matters.
Making Tax Digital (MTD) is an initiative in the United Kingdom aimed at creating a more effective, efficient, and simplified digital tax system for taxpayers.The objective of this system is to minimise errors and enhance accuracy in tax submissions.
To comply with MTD requirements, use compatible software like Xero and sign up with HMRC, linking it to your software. Consider consulting professional accountants for confident support in ensuring compliance.
MTD is a legal requirement for businesses in the UK. Familiarise yourself with HMRC guidance on MTD and consult professional accountants for further details. You can access your accountancy records anytime, anywhere with an internet connection, making life simpler and easier.
It’s crucial to find professional accountants who are adept at MTD compliance. Talk to several accountants and choose one confident with software like Xero. Consider recommendations from other business owners, then select the most suitable accountants for your needs.
First, link your software with your HMRC account. Then, regularly update your records of sales, purchases and expenses in the software. Review and correct any discrepancies for accuracy. Finally, submit the VAT return on time through your accounting software to comply with MTD for VAT.
Link your MTD compatible software to your HMRC accounts. Use digital accounting software like Xero or IRIS and ensure accuracy. Submit returns quarterly: 1 April to 30 June, 1 July to 30 September, 1 October to 31 December, and 1 January to 31 March. Note that MTD for income tax applies to individuals with property rental income and sole traders.
Your business may face penalties from HMRC for failing to comply with MTD. Financial penalties are imposed for late submissions after reaching a points threshold. For more information, visit the HMRC website regarding MTD non-compliance penalties.
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We are required by our professional bodies to have separate entity and therefore, there are two firms involved. Both firms are required to have Professional Indemnity Insurance (details of the PII available in our office upon request).
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