HMRC has now published their response to the latest round of Making Tax digital (MTD) consultations.
This is what we know so far:
- MTD will now take effect from 5 April 2018, for landlords and unincorporated businesses initially
- these businesses will need to provide a quarterly return of information to HMRC on their income, expenses and profit
- it looks like businesses currently using spreadsheets will need to combine these with accounting software
- HMRC is developing free software to cope with these quarterly returns, but it will only be suitable for the simplest of businesses – ie those below the VAT threshold with no employees.
The first thing to consider is how you will comply with the MTD requirement to keep electronic accounting records by using software such as Xero, Sage Online or QuickBooks. If you need help with this decision, then do feel free to contact us.
As yet, there’s no news on the proposed model for penalties and interest for late filing – only that there will be some! I’ll be updating you regularly over the next 12 months to make sure that you’re ready well ahead of 5 April 2018.
If you have any queries, please do contact Michael Burgess on 01782 279615 who will be happy to help.