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The government announced yesterday that they will delay Making Tax Digital for the Self-Employed and Landlords until April 2024.  This is a year later than originally planned.

Therefore, from 6th April 2024, for all self-employed businesses and landlords with a turnover of over £10,000, the government will replace the Self-Assessment Tax Return with Making Tax Digital.

General partnerships must join Making Tax Digital from the tax year beginning in April 2025.  The government will confirm the date for other types of partnerships in the future.

How do I become Making Tax Digital compliant?

Making Tax Digital will require five filings a year in an electronic format.  Four quarterly reports and a year-end final declaration. 

Whilst HMRC have approved a range of filing formats, submitting these reports on paper will not be an option.

Therefore, if you are not already using systems for your record-keeping and accounts preparation you will need to do the following:

Hence, you can configure the software to remind you when to file and there will also be a cumulative calculation of the tax due for the year based on the data submitted.

What are the payments and when will they be due?

The tax payment due date for 2024-25 will remain the 31st January of the following year.  However, HMRC are indicating that there will be a method to make voluntarily payments based on each submission.

A likely outcome of Making Tax Digital for the Self-Employed and Landlords is that, at some point, these payments will become compulsory.

For the first year there will be additional complexity because your 2023-24 tax return will still be due by 31st January 2025.

The first submission under Making Tax Digital will be due, the government expects, in the fourth month of the accounting period, followed by submissions on a three-monthly basis.

An example Making Tax Digital scenario

If your trading year aligns to the tax year, you must submit your report in August 2024 and the overall calendar will be:

We appreciate that “Making Tax Digital Delayed” may seem an age away with an additional cost in terms of time and money. However, our advice is to embrace the change now.  Ultimately, Making Tax Digital will give you a better overview of your business.

We are already implementing cost-effective solutions for clients to get them ready for Making Tax Digital.

Wondering if you need to submit a tax return? Please see our blog post here to help you answer this question.

If you have any queries or would like any assistance to ensure you are ready, please do not hesitate to contact us on tax@cooperfaure.co.uk.

You can find the official gov.co.uk new release here.

FAQs Making Tax Digital

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