Get used to a new way of reporting

What is it?

Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. All business will eventually be required to keep digital records of their income and expenses, and submit quarterly returns as well as end-of-year statements to HM Revenue and Customs (HMRC).

Who does it apply to?

MTD will eventually apply to all business and all taxes. HMRC are implementing a phased roll-out starting with sole traders and landlords.

When will it happen?

Sole traders and landlords earning over £10,000 per year need to be signed up to MTD for Income Tax by April 2024, and some general partnerships will need to meet the requirements from April 2025. Limited companies are expected to need to meet the MTD for Corporation Tax requirements  by April 2026.

What do I need to do?

Talking Numbers can take care of this for you! We will prepare your accounts from whatever bookkeeping records you have – we recommend using Xero Cloud Accounting Software. To ensure that you are ready and compliant, we will provide assistance and technical support with setting up MTD for Income Tax and what records now need to be kept.

Once you are set up, we will ensure that you understand your new software. We realise that it might be a challenge, but using digital software can make sure that your information is up-to-date, reliable and accurate – meaning that you can use it to make key business decisions.

Talking Numbers will handle the requirement to submit quarterly returns, as well as the new End of Period Statements where necessary.