Following on from the introduction of Making Tax Digital (MTD) for VAT, HMRC are preparing to introduce MTD for self assessment.
Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
- more effective
- more efficient
- easier for taxpayers to get their tax right
The majority of customers want to get their tax right but the latest tax gap figures show that too many find this hard. Avoidable mistakes cost the Exchequer £8.5 billion in 2018 to 2019. The accuracy that digital records provide, along with the help built into many software products and the fact that information is sent directly to HMRC from the digital records, avoiding transposition errors, will reduce the amount of tax lost to these avoidable errors.
Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.
Below list the 7 most asked questions for MTD for self assessment.
If you have questions how you will be affected by MTD for self assessment contact AJR & Co Ltd.