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MTD July 2020 Update

Posted 24/07/2020 by Amy Patterson

Financial Secretary to the Treasury announced on Tuesday 21st July an update on the future of Making Tax Digital. The government are moving forward with their ambitious programme by extending MTD to:

  • The remaining VAT population from April 2022
  • Unincorporated businesses and landlords with over £10k total business or property income filing their Income Tax Self-Assessment returns from any accounting period beginning on or after 6th April 2023
  • Beginning consultations on MTD for Corporation Tax in the Autumn this year

Currently, all UK businesses above the VAT threshold of £85,000 are covered by the system. Since MTD was introduced in 2019 more than 1.4 million businesses have joined the programme, submitting over 6 million returns.

From April 2022, all VAT registered businesses with turnover below the VAT threshold of £85,000 will now have to follow the MTD programme.

From April 2023, it will also apply to taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually.

The government has reported that over 30% of smaller VAT-registered businesses, who are not yet required to use Making Tax Digital, have chosen to do so voluntarily because of the wider benefits the digital tools offer, including fewer errors and increased productivity.

Due to many years of experience of digital accounting, Farnell Clarke is better placed than most accounting firms in the UK to ensure you’re kept, compliant.

Head over to our MTD page for more information.

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