In April 2019, HMRC implemented digital tax returns for small businesses. Making Tax Digital is an initiative from HMRC that is designed to make sure that our UK tax system is effective and efficient for taxpayers in an ever changing digital world.
Currently,
Making Tax Digital for VAT is mandatory for all VAT registered businesses, above the £85,000 threshold. This means that these businesses must keep records and submit their VAT returns digitally, using Making Tax Digital software that is recognised by HMRC, for example,
Quickbooks or
Xero.
Making Tax Digital is due to be extended to
all VAT - registered businesses from April 2022 and it is also scheduled to be mandatory for Income Tax from April 2024.
The Moore UK Making Tax Digital Hub is here to help you prepare for the next Making Tax Digital deadline in April 2022 and beyond.
Have a question?
Contact Us.
If you meet the criteria set out below, then it is likely that you will be impacted by Making Tax Digital for VAT in April 2022: