Making Tax Digital is a key focus of the Government's plans to help make it easier for people and businesses to keep on top of their tax.
This initiative is designed to benefit everyone, from VAT registered businesses to self-employed individuals and landlords., by ensuring better use of digital tools and improving overall tax position awareness.
HMRC aims to be one of the world’s most digitally advanced tax authorities, and the Making Tax Digital programme is a major step towards that goal.
Making Tax Digital for VAT
VAT registered businesses are now required to keep digital records and submit their VAT returns using compatible software. If your taxable turnover is above the VAT threshold, you must follow the Making Tax Digital rules.
This applies whether you’re running a limited company or your own business as a self employed individual or sole trader.
If you’re unsure about choosing the right software provider, our experienced team is here to help.
Making Tax Digital for Income Tax
If you’re self-employed or a landlord and your total property income and business earnings exceed £10,000 a year, you will be required to comply with Making Tax Digital for Income Tax.
As part of the changes, you’ll need to maintain digital records and send updates to HMRC using approved digital tools. This replaces the traditional method of filing an income tax self assessment return.
Whether you earn business income, other taxable income, or receive a pension, it’s essential to ensure that your taxable income is reported correctly under the new digital system.
How We Can Help
At M. Wasley Chapman & Co, we’re here to help individuals and businesses adapt to the Making Tax Digital changes. Whether you’re looking for support with Income Tax, VAT, or just general guidance on your tax responsibilities, we can walk you through every step.
From choosing the right software provider to understanding your tax position, our experienced tax advisers will ensure you meet the new requirements with confidence.
Ready to Embrace Digital Taxing?
Making the move to a fully digital tax system doesn’t have to be stressful. With the right guidance and support, managing your taxes can be smooth and straightforward.
Whether you’re self employed, a landlord with property income, or running your own business, understanding and complying with the Making Tax rules is vital.
To speak with one of our tax advisers, simply get in touch. We provide our tax services across Whitby, Scarborough, Middlesbrough, Saltburn and surrounding areas.
