Covid-19 Business Update 19 – Tuesday 8th September 2020

Following our previous update on 18th August, please find below notable changes that have been released via gov.uk.

You may already be aware that the following changes effecting Making Tax Digital (MTD) have taken effect from 21 July 2020.

Making Tax Digital for VAT

VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns.

If you are below the VAT threshold you can voluntarily join the Making Tax Digital service now.

The MTD for VAT ‘soft landing’ period ends and digital links must be in place for all VAT quarters beginning on or after 1 April 2021.

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.

Making Tax Digital for Income Tax

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