Without a doubt, HMRC’s drive to digitalise tax makes sense. Why request an annual return of taxable income when all the data can be pushed to a centralised Account (PTA) in real time?
MTD is mandatory for all VAT registered businesses, from April 2019. i.e. businesses with turnover of more than £85,000. As of April 2019, businesses affected by MTD filing for VAT purposes will need to upload their VAT returns directly from authorised accounts software. Most suppliers of software now have links to HMRC’s digital accounts system. This is a major change, probably the most impactful, since self assessment was introduced over twenty years ago.
Once MTD is fully implemented – no earlier than April 2020 – business and rental profits are to be uploaded on a quarterly basis directly from authorised accounting software used by the business owners or their advisors.