The UK government’s plan to expand Making Tax Digital (MTD) legislation will mean all VAT registered businesses will need to keep digital records from April 2022.
This will apply to roughly 1.1 million VAT registered businesses with taxable turnover below the VAT threshold. Beyond this, MTD will expand further to cover Income Tax for self-employed businesses and landlords above the threshold from April 2024.
With a quarter of businesses in this threshold already voluntarily registered for MTD, that leaves around 750,000 businesses who will need to start thinking about how they tackle the obligation of this new legislation. While many may see this as an extra hassle, MTD will actually bring your firm a range of benefits and opportunities – which can also be passed onto your clients.
It’s just a matter of how you position it to team members within your firm.
In this guide we’ve compiled useful tactics designed to improve your MTD strategy, and now with final regulations for MTD for ITSA moved from April 2023 to April 2024, there’s more time to perfect your plan.
At Dext we back accountants and bookkeepers in everything they do, and with MTD geared to shake up the tax space, Dext will be there to support you.