As you know, MTD (Making Tax Digital) is an HMRC initiative to modernise the taxation system in the UK. It has become mandatory for VAT-registered businesses to file their VAT returns through the MTD platform since 1 November 2022. HMRC recommends using MTD-compatible software to maximise the benefits of the MTD platform. Eligible firms that do not sign up on the platform will likely face penalties and are at an increased risk of undergoing a tax investigation. That’s because being late to file VAT returns raises red flags for HMRC.
Starting from April 2024, MTD will be mandatory for Income Tax Self Assessment (ITSA). Although 2024 seems like a long way ahead, business owners are urged to start complying to the MTD guidelines. How would this look like you may ask? Well, it’s quite simple, business owners who make £10,000 gross income each year, and above, would be eligible to digitise their accounting records by digitally recording the data from business interactions, usually in the form of a spreadsheet.
-6 April 2024: Sole traders and landlords who make over £10,000 annually.
-6 April 2025: General partnerships with a turnover of more than £10,000 annually.
At Elena Meskhi & Co., we use MTD-compatible software and can ensure that you are always compliant with the latest HMRC guidelines. Book a discovery call today, and don’t worry about being MTD & HMRC compliant or missing deadlines.
We are here to support your business!
