- February 15, 2022
- Posted by: fincrestadmin
- Category: Uncategorized
From 1 April 2022 all VAT registered businesses must sign up for Making Tax Digital (MTD) and maintain digital accounting records.
Previously only VAT registered businesses with a taxable turnover of more than £85,000 had to follow the rules for “Making Tax Digital for VAT”.
Businesses and organisations are required to use a functional compatible software product to submit updates and returns to HMRC. The software uses HMRC’s API (Application Program Interfaces) platform to submit information to HMRC.
From April 2024 MTD ITSA will be mandatory for the self-employed and those with income from property. It will only apply to those with turnover from self-employment plus gross rental income over £10,000.
From April 2025 MTD ITSA will be mandatory for general partnerships (ie, not limited liability partnerships or partnerships with a corporate or other ‘non-natural partner’. It will only apply to partnerships with a turnover of £10,000.
If you don’t already, you’ll need to start keeping digital records. The easiest way is by using compatible software that connects to HMRC systems. Fincrest uses a range of MTD compliant software and can assist you in choosing the best software for your individual business and budget.
Fincrest is a firm of Chartered Accountants operating digitally and helping small business owners to grow their businesses and minimise their tax liabilities.