In Spring 2018 the Government are introducing a radical change to our current tax system. They will require businesses and landlords to submit quarterly income and expenditure accounts to HMRC. Sole traders, partnerships and landlords will be the first to be affected. We will be contacting all clients in due course regarding the appropriate action required for them.
But, in summary HMRC are moving away from a single annual tax return report and will instead expect 6 submissions; 1 per quarter, 1 final submission and 1 final declaration.
Key points to mention
• We will be working with clients to get them onto online book keeping over the next 12 months. That way book keeping will be MTD ready by the time the new rules are implemented.
• Payment of income taxes and National Insurance for self employed people will remain the same (due in January and July) for the time being.
• Keeping accounts records on spreadsheets won’t work under the new system for MTD.