Making Tax Digital (MTD) Update
10th February 2017
In the latest Wired Sussex FD Forum we discussed (MTD) Making Tax Digital and the likely impact on businesses.
It is clear that although MTD will be upon us shortly (2018), there is still a lot of uncertainty on what this means for us all.
A more linked up system makes complete sense in this digital age, and would provide tax payers with assurance that they can review their ‘digital tax account’ online at any time to check this.
However for small businesses and landlords there is much concern about how the periodic reporting of profits and payments of taxes will work in practice.
The £10,000 threshold has been unpopular as this is lower than the personal allowance (currently £11,000) and the VAT registration threshold (£83,000).
HMRC will have their work cut out to keep the timeline on track, and it may be that closer to the final destination date of 2020 is when we really start seeing the new system in place.
It certainly is going to be an interesting period of change for businesses and tax advisors over the next few years and we look forward to hearing more on how this will work in next month’s budget.
For more information on this topic, please contact Alex Koupland, Client Manager on 01273 701200.
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