Making Tax Digital Update
Legislation will be introduced in the Finance Bill 2017 and will set out:
1. Digital record keeping
2. Establishing taxable profits
3. Providing HM Revenue & Customs with updates
4. End of year activity
The timetable for businesses, self-employed people and landlords required to start using the new digital service is as follows:
1. From April 2018, if the businesses, sole traders and partnerships have turnover in excess of the VAT threshold announced as £85000.
2. From April 2019, sole traders and partnerships, below the VAT threshold.
3. From April 2020 those organisations who pay corporation tax.
4. It should be noted that businesses, self-employed people and landlords with turnovers under £10K are exempt from these requirements.
Those individuals in employment who have secondary income of more than £10,000 per annum through self-employment, or property letting, will also be required to use the digital services.