HM Revenue & Customs (HMRC) has confirmed that Making Tax Digital (MTD) will be extended to all VAT-registered businesses from April 2022.<\/p>\n
The change forms part of the Government\u2019s digital tax drive, which will eventually see all kinds of tax reported and paid using digital accounting software.<\/p>\n
Under current rules, businesses whose turnover is above the VAT threshold of \u00a385,000 are required to keep digital records and provide VAT returns through specialist digital systems.<\/p>\n
But from April 2022, MTD will be extended to all businesses who charge VAT, including those earning less than the VAT threshold but are voluntarily registered for the tax.<\/p>\n
And from 2023, MTD will be further extended to all taxpayers who file self-assessment tax returns for business or property income worth over \u00a310,000 annually.<\/p>\n
Commenting on the announcement, HM Revenue & Customs (HMRC) said digital tax systems \u2013 currently used by 1.4 million VAT-registered businesses \u2013 help reduce costly errors and mistakes.<\/p>\n
\u201cThe long lead-in time will allow businesses, landlords and agents time to plan. It also gives software providers enough notice to bring a range of new products to market, including free software for businesses with the simplest tax affairs,\u201d said HMRC.<\/p>\n
\u201cOver 30 per cent of smaller VAT-registered businesses, who are not yet required to use Making Tax Digital, have chosen to do so voluntarily because of the wider benefits the digital tools offer, including fewer errors and increased productivity.\u201d<\/p>\n
For help and advice on matters relating to VAT and Making Tax Digital, contact our expert team today.<\/strong><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" HM Revenue & Customs (HMRC) has confirmed that Making Tax Digital (MTD) will be extended to all VAT-registered businesses from April 2022.<\/p>\n","protected":false},"author":2,"featured_media":3657,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,30,73,28,33,34,25,4,26,7,27,32,52],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3655"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=3655"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3655\/revisions"}],"predecessor-version":[{"id":3656,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3655\/revisions\/3656"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/3657"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=3655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=3655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=3655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}