The government has announced that making tax digital is due to be a requirement for income tax self assessment from April 2024. But what does this actually mean for you? We’ve pulled together everything you need to know to make sure you are prepared for this change.
What Will Making Tax Digital Require?
With the new regulation a large majority of individuals will have to complete quarterly reports detailing their income and then submit this to HMRC. You will still need to submit a year end set of accounts, as usual, this is where an adjustments to your quarterly submissions can be made.
All these submissions must be made through MTD compatible software, such as Quickbooks or Xero.
Who will this affect?
The new rules will be coming into place for anyone who fits into the below categories:
- Sole trade income with turnover exceeding £10,000
- Property landlords with gross rental income (before deducting expenses) exceeding £10,000
- Individuals with a combination of any of the above that takes them over £10,000 of gross income
What should we be doing to get ready?
Although the deadline for MTD may seem far off, it is important you start putting things in place now so that these changes don’t creep up as a nasty surprise. The best way to make sure you are prepared is to start transitioning to a compatible software. Use the next year to ensure you are clued up on how your software works, so there is one less thing you have to learn when April 2024 arrives.
Here at M&L we use Quickbooks for our clients, get in touch if you’d like to learn more about how we can help you with this transition.
Get in touch with us today to find out how we can help you.
We believe that a personal approach to client management is important! We ensure that we always go the extra mile to make sure that your accounts are up to date and comply with all regulations. With our expert knowledge we are happy to advise you on all finance related matters.
