Making Tax Digital

NOTES FOR CLIENTS RE MAKING TAX DIGITAL

The requirement for businesses to keep their records in Electronic Format to support their VAT returns has been with us now since 2019.

If you are a new business, we can help you with these obligations. We are familiar with all the major accounting packages – Sage, Xero & Quickbooks, but we can also use spreadsheets for clients who still need to submit VAT returns but whose affairs are simpler or who do not wish to get involved in computerised accounting. Talk to us to get any help you need in this area.

HMRC is now expanding its “Making Tax Digital” requirements to individuals under self assessment who have gross income from self employment or property exceeding £50,000.

From April 2026, all individuals will have to make quarterly returns to HMRC, together with one final return which becomes your tax return submission for the year. The income threshold will reduce to £30,000 from April 2027 and then to £20,000 from April 2028.

As time gets nearer, we will be making sure all our clients meet their obligations in this area.