Today, the Financial Secretary to the Treasury has confirmed that Making Tax Digital (MTD) for VAT will be extended to all VAT registered businesses with turnover below the VAT threshold (£85,000) from April 2022, and from April 2023 to taxpayers who file Income Tax Self-Assessment returns for business or property income over £10,000 annually.
The government also announced it will consult in the autumn on the design of MTD for Corporation Tax.
We are making this announcement now to give businesses certainty.
We have listened carefully to feedback from businesses, agents, software developers and accountancy representative bodies, and are confident that today’s announcement provides those impacted with the certainty they need and adequate time to make the necessary preparations.
We will expand the pilot service for Income Tax from April 2021 to allow more businesses and landlords to help us improve how the service works for them.
COVID-19 is creating extremely difficult times for all, and we are committed to helping in every way possible all those businesses facing unprecedented challenges.
Therefore, we are providing all MTD businesses with more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place.
For further information, see HMRC link below:
[Click Here] Making Tax Digital for VAT: service availability and issues
[Click Here] Making Tax Digital for VAT as a Business: Step by Step
[Click Here] Making Tax Digital for VAT as an Agent: Step by Step
[Click Here] VAT notice 700/22
[Click Here] How VAT businesses and other VAT entities can get ready
[Click Here] Sign in to your HMRC online account using the Government Gateway
[Click Here] HMRC Transaction Monitoring Privacy Notice