Making Tax Digital for Income Tax
For more information on what Making Tax Digital is, see our article here.
Making Tax Digital for the self employed will be mandatory for individuals with an accounting period that starts on or after 6 April 2023 and your taxable turnover from running your business or renting your property is £10,000 or more.
What do I need to do?
Individuals and partnerships will need to keep digital records for all their income and expenditure for the self-employment or property.
The easiest way to do this is by using software. At Kala Atkinson we use Xero and Dext to maintain our clients records.
Quarterly declarations of records will need to be submitted to HMRC with one year end declaration confirming the final figures.
When will my tax be due?
The tax payment deadline will remain as 31 January following the tax year. However the option to pay quarterly in advance will be available.
Eventually, four mandatory payments of income tax will be due to HMRC during the year.
KALA ATKINSON ARE A FIRM OF CHARTERED ACCOUNTANTS BASED IN EAST LONDON.
We have over 30 years experience in helping individuals and small businesses navigate their compliance whilst providing the business advice and the necessary financial tools to grow.
If you want us to help getting your small business ready for MTD before 5 April 2023, get in touch today.