The next step for MTD
It’s a digital world – The next step for MTD
We have already had the first big move in Making Tax Digital, with the transition of nearly all VAT registered companies with a turnover of over £85,000 being forced onto digital software such as QuickBooks or being made to use bridging software, keeping an online record of all transactions in an effort to make tax more transparent.
We are finding that this has been a beneficial move for the majority of businesses, as with the right training, they are finding the use of software is not just keeping them compliant but making them more efficient. So far, 1.4 million businesses have transitioned onto this system.
This week, the next step in the MTD rollout has now been announced with the following schedule laid out by the treasury:
“From April 2022, the programme will be extended to all VAT registered businesses with turnover below the VAT threshold (£85,000), and from April 2023, it will apply to taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually.”
Whether there will be setbacks or not is yet to be seen, but what we can see is that in the fullness of time, only the smallest of businesses are likely to fall outside of Making Tax Digital. However given the success of the first stage of this transition, it does not need to be something to be concerned about if you haven’t made the move yet, but can be an opportunity to step up the way in which you run and review your business.
If you wish to speak to somebody that specialises in taking businesses onto compliant software packages in preparation for this transition, please feel free to get in touch with us for a free consultation to see if we can futureproof your company.