making Tax Digital

Making tax digital for VAT

At OCM Accounting we have HMRC Approved MTD compatible software

Who Needs to be registered for mTD VAT

You must sign up for ‘Making Tax Digital for VAT ‘ if your taxable turnover is more than £85,000.

For VAT registered business with a taxable turnover below £85,000 you will need to comply with “Making Tax Digital” from April 2022

Making Tax Digital (ITSA)

An introduction to Making Tax Digital for Income Tax (MTD ITSA)

From the 6th April 2024 (Originally April 2023) Self-Employed businesses and landlords with an annal business or property income above £10,000 will need to comply with HMRC’S rules and regulations for MTD ITSA (Making Tax Digital for Income Tax)

 General Partnerships are not required to join MTD for ITSA until the Tax year 2025-2026.

Periods and Deadlines

• Quarterly update one – period from April 6 to July 5 – deadline August 5

• Quarterly update two – period from July 6 to October 5 – deadline November 5

• Quarterly update three – period from October 6 to January 5 – deadline February 5

• Quarterly update four – period from January 6 to April 5 – deadline May 5.

The EOPS is linked to the accounting period for each source of income and cannot be completed until the end of the accounting period. However, the customer does not need to complete it until 31st January Year 2

What this means for Self-Employed Businesses, Landlords and Partnerships.

All businesses that fall in to the MTD ITSA category will be required to send four quarterly updates, including an End of period statement (EOPS) and a final declaration.

To do this they must

  • Have HMRC recognised software
  • Keep digital records of all business income and expenses

Sign up voluntarily now

If your business is eligible and ready, we can help you sign up now!

This will allow time for your business to become more organised and implement the new procedures and for HMRC to test and develop the service before 6 April 2024.

To check if your eligible visit:

https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax