Local Life - Wigan - August 2021

68
Coming Soon
MTD for YOU!
By Kieran Fitzgerald AATQB
CMA Accountancy
Making Tax Digital, or ‘MTD’ for short, was instigated by
HMRC to digitise the tax administration process in the UK.
Significant changes have already been made, and will
continue to be made, to how businesses are required to store
and report on their taxes. MTD will make the tax reporting
process more efficient, effective and simpler for taxpayers to
get their taxes right.
Due to the pure size of the change, HMRC have broken
MTD into manageable chunks to allow them to develop
systems and manage queries, but also to give time to
businesses to implement the necessary changes before
the deadlines.
The Story So Far
After successful pilot schemes for Income Tax and VAT in
2018, it became compulsory in 2019 for all VAT registered
business with turnover over £85,000 to keep digital records
and submit returns using MTD compatible software.
MTD for VAT
It was then announced that by 1st April 2020, all VAT
registered businesses regardless of turnover were
required to comply with the requirements of MTD, a date
which has been extended to the 1st April 2022 due to the
impact of COVID-19. This means an end to cut and paste
data for VAT Returns, and a requirement to use functional
compatible software products to submit returns to HMRC.
MTD for Income Tax
Following the full introduction of VAT registered
businesses, the next stage in the MTD initiative is Making
Tax Digital for Income Tax. Self-employed individuals
and landlords with annual business or property income
exceeding £10,000 will need to comply with the
requirements of MTD for Income Tax from their first
account period starting on or after 6th April 2023.
If you are a self-employed business or landlord, you can
voluntarily use software to keep business records digitally
and send Income Tax updates to HMRC as opposed to
filing a Self-Assessment tax return, before the compulsory
deadline on 6th April 2023.
MTD for Corporation Tax
The UK government has published a consultation on the
future design of MTD for Corporation Tax and is actively
seeking views from companies and organisations within
the scope of Corporation Tax, agents and software
developers as to how best to proceed with these changes.
In the future, the government will provide businesses
with the opportunity to partake in a pilot for this stage
of the MTD roll-out, and will not mandate its use before
April 2026.
Our team of VAT experts are well equipped to help
you with your MTD requirements, and our website is
full of handy tips on the benefits of cloud software,
something you’ll need to migrate to in order to be
fully MTD compliant. CMA are cloud accounting
experts, and our Gold partnership status with Xero
allows us to best position you for MTD compliance
now, and in the future!
To keep up to date with the latest changes
and developments with MTD, and everything
else in the world of accounting and business
be sure to check out our brand-new website at
www.cma-accountancy.com
and register for our weekly newsletters.
We offer a free consultation meeting to any individual
who would like to speak to us about these changes.
Feel free to give us a call and we can arrange to
discuss this further. Alternatively, stay up to date on
all of the latest developments via our website www.
cma-accountancy.com by checking out our blog,
and signing up for our weekly newsletters.
Kieran Fitzgerald – CMA Accountancy
39 Skull House Lane, Appley Bridge, Wigan, WN6 9DR
01257 255521 info@cma-accountancy.com
www.cma-accountancy.com