We have covered MTD for income tax payers who don’t fall below a £10,000 threshold. But what of corporate taxpayers and VAT.
Starting with VAT, most businesses who are registered for VAT will be required to report this via MTD from April 2019. It is not exactly clear exactly how this will work as details are still rather vague.
It appears that those affected will be required to provide summary tax data to HMRC quarterly via their digital account, for VAT these quarterly updates will replace the VAT return.
We have even less information about corporation tax. Companies will become part of MTD from April 2020. It is expected that they will be required to file a quarterly report with HMRC in the same way as individuals, followed by a year-end reconciliation.
At this stage we don’t know whether this will also mean that all companies are required to pay their corporation tax by quarterly instalments, as some already do, or if the payment system will remain as it is.
We will provide you with further updates on this as they detail becomes available.
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.