Making Tax Digital is coming on the 1st April 2024, are you ready?

Are you an individual subject to income tax on the profits of your trade, profession, vocation, or property business?

  • If so, are you keep accounting records electronically either using suitable software or on a spreadsheet?
  • Did you know you will need to file quarterly returns to HMRC with details of income and expenditure together with any other information that HMRC specifies?
  • Did you know that in addition to quarterly returns, a final end-of-period statement will also be required?

Although the frequency of reporting is to change, the timing of tax payments will not and the current system of payments on account and balancing payment by 31 January after the tax year is expected to remain in place for the foreseeable future.

There are exemptions to the above

In line with the exemptions for Making Tax Digital for VAT, if any of the following apply, you may be exempt if:

  • It’s not reasonably practicable for you to use digital tools to keep your business records or submit quarterly returns due to age, disability, remoteness of the location, or any other reason (often referred to as ‘digital exclusion’).
  • You are subject to an insolvency procedure.
  • The business is run entirely by practising members of a religious society or order whose beliefs are incompatible with using electronic communications or keeping electronic records.

Did you know that an individual has to apply to HMRC to claim an exemption?

This can take HMRC up to 28 days to either grant or deny the application.

If you would like assistance or clarification on any point raised above, please contact us to discuss your options and our solutions.

For more information about our services and how we can help your business please get in touch.
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