Making Tax Digital
So what is it all about?
HMRC is introducing Digital Tax accounts to embrace new technology and in theory to make tax easier for business owners. However there have been many delays and HMRC have recently pushed their plans back to at least 2020 for income tax and corporation tax.
There has been a lot of hype and scaremongering regarding MTD. However please bear in mind HMRC software has not yet been developed sufficiently to fully introduce the new system! Therefore neither have any software providers, as they do not yet have full information of HMRC requirements.
Businesses will not now be mandated to use the Making Tax Digital for Business system until April 2019 and then only to meet their VAT obligations. This will apply to businesses who have a turnover above the VAT threshold - the smallest businesses will not be required to use the system, although they can choose to do so voluntarily.
The Personal Tax Account brings together each individual taxpayer's information in one online place. It allows people to access the service from a digital device of their choice and at a time that suits them. It allows them to register for new services, update their information and see how much tax they need to pay.
Any Business.....Builders...Retail....Buy to Let....Beauty Salons....etc..etc