Making Tax Digital Update
Legislation will be introduced in the Finance Bill 2017 and will set out:
- Digital record keeping
- Establishing taxable profits
- Providing HM Revenue & Customs with updates
- End of year activity
The timetable for businesses, self-employed people and landlords required to start using the new digital service is as follows:
- From April 2018, if the businesses, sole traders and partnerships have turnover in excess of the VAT threshold announced as £85000.
- From April 2019, sole traders and partnerships, below the VAT threshold.
- From April 2020 those organisations who pay corporation tax.
- 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.