Following a delay to the Government’s plans for its Making Tax Digital (MTD) initiative, in the aftermath of Brexit, HMRC recently consulted on its proposals to create a ‘transparent and accessible tax system’ for the digital age.
When the new system is introduced, businesses will be required to keep digital records and to make regular updates regarding income tax and NICs. A number of exemptions apply, however, and the Government has now confirmed that the exemption from quarterly returns applying to individuals with secondary incomes of less than £10,000 a year (from self-employment or property) will be extended to all unincorporated businesses and landlords with annual incomes below £10,000.
The Government has also proposed a deferral of the introduction of MTD for additional businesses until 2019, to allow them extra time to comply with the new requirements, and is looking at options to provide financial support for businesses during the digital transition.
We can help you choose an online bookkeeping package that will enable you to comply with Making Tax Digital and provide you with the business benefits associated with being able to access your data at any time, on your phone, tablet or computer and doing away with traditional software headaches like upgrades and backups.
Please contact us for more details.