Making tax digital (MTD)

HMRC have announced they will delay the introduction of MTD for sole traders and landlords until the 6^th April 2024.  This is good news as MTD for Income Tax Self Assessment (MTD ITSA) will cause additional time and costs to be able to file quarterly reports to HMRC. However, do not confuse this with the extension of MTD for VAT.  This is still going ahead and will now be extended to VAT registered businesses with turnover of less than £85,000 per year.  These businesses will need to obtain MTD compatible software in order to be able to make the detailed quarterly transmissions to HMRC.  This extended requirement will apply from April 2022 leaving little time now to prepare. We have been filing client’s quarterly MTD returns for a long time now and can help you, if this is going to impact your business.