Making Tax Digital to begin in April 2018!
Posted on 24th March 2017 at 13:16
Be prepared for the change!
The way individuals and businesses communicate with HMRC is soon to change, with HMRC’s plans to make businesses file quarterly information with them.
For most businesses, self-employed and landlords there will be a change in the fact most of their financial records will become increasingly digital, rather than manual record keeping. A few exemptions may occur, but most businesses with a turnover more than £10,000 will start to plan for Digital Tax.
Here are some key facts about tax becoming digital:
• New businesses must make the first return within 4 months of starting the business.
• Digital Tax will not be introduced to larger partnerships until 2020.
• There are to be no late filing penalties in the 1st year of the new system.
• Businesses will not have to make and store receipts digitally.
• Businesses and property landlords with a turnover up to £150,000 will be able to prepare accounts on a cash basis.
• Free software will be available to businesses with more straightforward affairs.
• Unincorporated businesses with an annual turnover below the VAT registration threshold of £83,000 will have until April 2019 to prepare for Digital Tax.
If you do not currently keep all your financial records on a software package capable of communicating with HMRC, then do let us know as we will be happy to help!
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