The tax system is under reform. The Government’s stated intention is to modernise the method of administering UK taxes by making it “more effective, more efficient and easier for customers to comply”.
Since April 2019, all VAT registered businesses are required to start using the new digital service, known as Making Tax Digital for Business (MTDfB). From April 2020, at the earliest, all businesses, self- employed individuals and landlords will be required to use MTDfB to provide details of profits, income and expenditure to HMRC on a quarterly basis.
A new penalty for failure to keep adequate digital records will apply, so businesses need to be prepared for these changes in order to ensure compliance.
Download the below MTD factsheet to learn more: