Upcoming Making Tax Digital deadline for small businesses: November 2022

Making Tax Digital, created by the government, aims to get small businesses and the self-employed to process tax records and returns digitally.

The government have said that MTD will reduce errors, helping businesses to get their tax right first time. It will also make it easier for businesses to manage their tax affairs, resulting in business growth.

There have already been several deadlines for MTD, and there are a couple more deadlines fast approaching. Ensure your business is prepared for any upcoming changes.

Upcoming deadlines

From 1st November 2022: VAT-registered businesses can no longer use their existing VAT account to send returns, and they must be signed up to MTD.

Eventually, all businesses and the self-employed will need to be completely paperless.

April 2024: Making Tax Digital will apply to taxpayers who file income tax Self Assessments for business or property income of over £10,000 per year.

Previous deadlines

April 2019: VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000 need to store digital records and submit digital VAT returns. Complex businesses were given a 6 month deferral to prepare.

October 2019: More complex businesses who were deferred must comply with previous MTD deadline.

April 2022: MTD compulsory for businesses whose turnover is under the £85,000 VAT threshold.

Register for Making Tax Digital

Businesses should be prepared for the upcoming MTD changes. You must begin using MTD compatible software, then you can register for Making Tax Digital.

An accountant will be able to help you with this. Try searching for an accountant which specialises in online accountancy software, VAT or tax returns.

Article by Simply Business