In partnership with Clear Path Accountancy
All VAT registered businesses should now be using cloud accounting software to submit their VAT returns directly to HM Revenue & Customs. From April 2024 all self-employed businesses and landlords with a gross annual income of over £10,000 will have to follow the rules for MTD.
The rules will be extended to partnerships the following year, with limited companies expected to join in 2026.
Under Making Tax Digital, you will be required to keep digital records and make quarterly submissions detailing your income and expenses.
The standard quarterly periods in each tax year are for the period ended 5 July, 5 October, 5 January, and 5 April although you can choose to use 30 June, 30 September, 31 December and 31 March period ends. You will have approximately one month to submit your quarterly figures after each period.
There will then be a final declaration to submit which replaces the current self-assessment tax return, however the deadline for this remains the same at 31 January following the 5 April year-end.
If you do not currently use a 5 April / 31 March year-end date you will have to realign your year-end to these dates.
