The income tax system as we have known it for the last 20 years is about to change dramatically. From April 2018 businesses whose turnover exceeds £85,000 will be required to keep their records in a digital format and to send HMRC an electronic quarterly summary of income and expenditure. After the end of the accounting period they must also send an electronic annual summary.
Businesses with turnover between £10,000 and £85,000 have a delayed start date of April 2019, when digital record keeping for VAT become mandatory, this is also the date landlords with rental receipts exceeding £10,000 will also be required to start keeping digital records and sending quarterly summaries to HMRC.
Partnerships will make the quarterly update, rather than partners, unless they have other income to declare.
At present a rental or trading business with profits below £10,000 will be exempt from MTD and quarterly updates and will, along with employees who have investment income exceeding the 0% rates make returns via a personal tax account. A link to view your own personal tax account is included in all Jack Ross email footers.
We will be partaking in the trial for MTD starting soon, if you might be interested in being involved please let us know by calling us on 0800 020 9542.