HMRC are planning that all tax will be digital by 2020. This will in time affect every business, landlord and self-employed tax payer.
The suggested timetable for this is as follows:
April 2018, Businesses with profits chargeable to Income Tax and pay Class 4 National Insurance contributions (NICs) and a turnover in excess of the VAT threshold (£85,000)
April 2019 Businesses with profits chargeable to Income Tax and pay Class 4 NICs and a turnover is below the VAT threshold
April 2019 Business that are registered for and pay VAT
April 2020 Any business that pays Corporation Tax (CT)
Any business, self-employed person or landlord with an annual turnover of less than £10,000 will be exempt from the above. If your annual turnover is £10,000 or more, you will be required to register, file and pay online each quarter.
This will obviously be a huge change to many clients and we recommend that, if you currently keep your accounts yourself, you start monthly accounting so that you are prepared for MTD.
We are here to make the changeover as painless as possible so please do contact us to discuss the way forward and the services we can offer with regards to bookkeeping.