"Making Tax Digital" Services in Southall
What is “Making Tax Digital?”
It’s an initiative led by the UK Government and HMRC designed to make it faster and easier for people to record, understand, and file their taxes electronically. It was originally announced in 2015.
Almost everyone. If you pay tax and file a tax return in the UK you will be affected — this includes businesses, landlords, individuals, nonprofits, and more. Essentially, if you file a tax return, use an accountant, or get income from any place other than standard PAYE payroll, Making Tax Digital matters to you.
HMRC has stated that Making Tax Digital won’t impact on people who are pensioners, solely paid through payroll / PAYE, or who have a secondary income of less than £10,000.
The personalised digital tax account is at the heart of Making Tax Digital. It contains all of the available information that HMRC holds on you, your business, your taxes, and various other areas.
When to Move For Making Tax Digital?
Digitised Taxes for Income Tax
Independent businesses and owners with annual income from business or property over £ 10,000 will be required to follow MTD’s income tax rules from their next accounting period from April 6, 2023. Some companies and agents are already maintaining digital records and providing updates to HMRC as part of the live pilot program. If you are self-employed, you may voluntarily use software to digitally maintain business records and submit income tax updates to HMRC instead of submitting a self-assessment report.
Fiscal Digitization for Corporate Taxes
The government has released a consultation on the future design of Making Tax Digital for Corporation Tax and welcomes the views of businesses and other organizations from the corporate tax office, agents, professional bodies, and software developers. The government will offer businesses the opportunity to participate in a pilot project to make taxes digital for corporate tax purposes and will not require their use until 2026.
For further information please contact us.