SPCleaning
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I received the following from the accountant today,
You may well have started to hear this phrase so we thought that a summary of what it is, who it will effect and when it will effect, may be of use.
What is Making Tax Digital?
Making Tax Digital will make it a legal requirement for businesses to keep their records digitally.
From April 2018 sole traders, partnerships and those with rental income will need to start sending quarterly accounts electronically to HMRC. Limited companies will not need to start until 2020.
Eventually it will be compulsory for businesses and landlords with income over £10,000 but to start it is likely to be compulsory for those with income over the VAT threshold (currently £85,000), but this hasn’t yet been confirmed.
Within a month of quarter end, tax payers will need to submit Profit and Loss numbers to HMRC.
After the 4 quarters have been submitted, then there is a 5th submission to bring in any annual and tax adjustments so that the 5 added together will be the equivalent of your yearend accounts and tax return.
Sounds like great fun....
You may well have started to hear this phrase so we thought that a summary of what it is, who it will effect and when it will effect, may be of use.
What is Making Tax Digital?
Making Tax Digital will make it a legal requirement for businesses to keep their records digitally.
From April 2018 sole traders, partnerships and those with rental income will need to start sending quarterly accounts electronically to HMRC. Limited companies will not need to start until 2020.
Eventually it will be compulsory for businesses and landlords with income over £10,000 but to start it is likely to be compulsory for those with income over the VAT threshold (currently £85,000), but this hasn’t yet been confirmed.
Within a month of quarter end, tax payers will need to submit Profit and Loss numbers to HMRC.
After the 4 quarters have been submitted, then there is a 5th submission to bring in any annual and tax adjustments so that the 5 added together will be the equivalent of your yearend accounts and tax return.
Sounds like great fun....