Making Tax Digital: Stephenson Smart Accountants

Specialism: Making Tax Digital

Are you ready for Making Tax Digital?

The government’s Making Tax Digital programme launched in 2019 – by 2023 there will be an expectation on most businesses and self-employed individuals to keep digital records and use software to submit their returns.

If you are a small business and don’t already have an internal system to log your accounting records, you can use off-the-shelf software such as or .

Which businesses does this affect now?

If your business is VAT registered and has a taxable turnover above the £85,000 VAT registration threshold you are now required to maintain your accounts digitally and submit your VAT returns to HMRC using functional compatible software – maintaining purely paper records no longer meets the legal requirements of the tax legislation.  There is room to apply to HMRC for an exemption if it’s not reasonable or practical for you to use computers, software or the internet.

The requirement does not currently apply to businesses who are not VAT registered, or who are registered but have taxable turnover below £85,000. Although voluntarily registered businesses can opt into the scheme if they wish and we would recommend that you may consider this as best practice and forward planning for your business.

When will it affect me or my business?

VAT registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax Digital rules for their first return starting on or after April 2022.

Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for Making Tax Digital for Income Tax from their next accounting period starting on or after 6 April 2023.

We would recommend that as part of your forward planning for your business that you look to start keeping digital records and providing updates to HMRC electronically.

Across the Stephenson Smart offices, we have accountants who have specialist knowledge and accreditations to support our clients with their Making Tax Digital obligations.

Please if you would like to discuss how you can prepare for these changes.

 

 

 

 

 

 

 

Are you ready for Making Tax Digital?

The government’s Making Tax Digital programme launched in 2019 – by 2023 there will be an expectation on most businesses and self-employed individuals to keep digital records and use software to submit their returns.

If you are a small business and don’t already have an internal system to log your accounting records, you can use off-the-shelf software such as or .

Which businesses does this affect now?

If your business is VAT registered and has a taxable turnover above the £85,000 VAT registration threshold you are now required to maintain your accounts digitally and submit your VAT returns to HMRC using functional compatible software – maintaining purely paper records no longer meets the legal requirements of the tax legislation.  There is room to apply to HMRC for an exemption if it’s not reasonable or practical for you to use computers, software or the internet.

The requirement does not currently apply to businesses who are not VAT registered, or who are registered but have taxable turnover below £85,000. Although voluntarily registered businesses can opt into the scheme if they wish and we would recommend that you may consider this as best practice and forward planning for your business.

When will it affect me or my business?

VAT registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax Digital rules for their first return starting on or after April 2022.

Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for Making Tax Digital for Income Tax from their next accounting period starting on or after 6 April 2023.

We would recommend that as part of your forward planning for your business that you look to start keeping digital records and providing updates to HMRC electronically.

Across the Stephenson Smart offices, we have accountants who have specialist knowledge and accreditations to support our clients with their Making Tax Digital obligations.

Please if you would like to discuss how you can prepare for these changes.

 

 

 

 

 

 

 

Making Tax Digital

Our Offices

King's Lynn Office

22-26 King Street, King’s Lynn,
Norfolk, PE30 1HJ

T:   01553 774104

F:   01553 692602

E:   enquiries@stephenson-smart.com

Great Yarmouth Office

East Coast House, Galahad Road, Beacon Park,
Gorleston, Great Yarmouth, Norfolk, NR31 7RU

T:   01493 382500

F:   01493 651172

E:   greatyarmouth@stephenson-smart.com

Fakenham Office

10 Oak Street, Fakenham,
Norfolk, NR21 9DY

T:   01328 863318

F:   01328 855732

E:   fakenham@stephenson-smart.com

Wisbech Office

2 The Crescent, Wisbech,
Cambridgeshire, PE13 1EH

T:   01945 463383

F:   01945 475968

E:   wisbech@stephenson-smart.com

March Office

23 Dartford Road, March,
Cambridgeshire, PE15 8AN

T:   01354 653026

F:   01354 650337

E:   march@stephenson-smart.com

Downham Market Office

1st Floor, 9 Market Place,
Downham Market, Norfolk, PE38 9DG

T:   01366 384121

F:   01366 381309

E:   downhammarket@stephenson-smart.com

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