Making Tax Digital (MTD) is an HMRC initiative in order to make the UK tax system the most digitally advanced administrations in the world thus making it comprehensively easy, more effective and more efficient for taxpayers.
MTD is only going to apply to firms that are VAT-registered and generate annual turnovers of at least £85,000. So for sole traders and other businesses that do not meet this minimum requirement, there is not currently a need to take action.
Start Date
Details of MTD have been published well ahead of the point at which it will be rolled out nationally. This will take place on the 1st of April 2019; the start of the tax year and the dawn of a new age for this essential aspect of operating a business in the UK.
This means that there is still plenty of time for small firms to get their act together and prepare for an all-digital approach to submitting returns. But this window of opportunity is closing fast, so it is best to make changes sooner rather than later to avoid being caught out.
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