Superhero capes at the ready
Accounting practices will be at the forefront of preparing microbusinesses and sole traders for their making tax digital obligations.
Making Tax Digital (MTD) is widely recognised as the most fundamental change to the UK tax system for a generation - a change, in fact, that would not have been conceivable, let along possible, a generation ago. Recognised, that is, by the big businesses that will come under its remit in 2020.
From 1 April 2018, unincorporated businesses and landlords with turnover above the VAT threshold - £85,000 for 2017/18, and yet to be confirmed for 2018/19 - will need to submit quarterly digital reports of their income and expenses, plus an annual self-assessment return, from the period of account that beings after 6 April 2018. Those with turnover under the VAT threshold will be liable from 6 April 2019.
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