News

HM Revenue and Customs (HMRC) have now completed the roll out of their first step of Making Tax Digital (MTD) for VAT.  This has meant that the majority of VAT registered businesses will now have to submit their VAT returns using software.  Following the success of this, HMRC is now continuing with their MTD pathway for Income Tax.

MTD for Income Tax is very similar to MTD for VAT in that you will be required to keep digital records and complete quarterly submissions to HMRC.  These quarterly submissions will need to be submitted directly through an approved software package such as Xero or QuickBooks.

This change is initially going to affect all self-employed individuals and landlords with income over £10,000.  This change is expected to affect 4.2million taxpayers.  The introduction of MTD for Income Tax was originally earmarked for April 2023, however due to the disruption caused by the Covid-19 pandemic, this has now been delayed until April 2024.

At David Allen we are already planning on how we can best support our clients, either by our experts assisting with the best software solution for their needs and budget, or by discussing how we can help take the burden from our clients and provide a compliant support package.

Preparation ahead of the deadline is going to be key, and we are therefore already working with clients to ensure they are comfortable with the upcoming changes, and how we can make this transition as easy as possible.

In order to do this, we are offering MTD consultations in our Dalston, Dumfries, Penrith and Workington offices where one of our experts can assist you, please get in touch for more details.