If you’re confused by HMRC’s new Making Tax Digital plans, then you’ve come to the right place.
So, what’s new?
- HMRC intends to join up all of it’s internal systems to create one account for each taxpayer, that can show all of their different taxes within HMRC. Via your Digital Account, you could view all your payments and offset overpayments in one tax against any underpayments in others.
- MTD also means that quarterly filing and potentially payments for businesses and landlords may also become mandatory. The first stage of MTD will affect small unincorporated businesses and landlords. The second stage is VAT and the third and final stage will affect companies, but not until 2020.
- A new late filing and penalty system will eventually come in to quarterly returns and declarations.
- Accounts and tax returns are likely to become quarterly, but businesses will still need to prepare year end accounts in order to reconcile their MTD accounts and payments. They will also be required to submit an end of year declaration, rather than a Self Assessment or Corporation Tax Return.
For further expert advice, please contact our accounts in our Melton Mowbray office.