Making Tax Digital- Update

When do you need to start worrying about it? This is quite a complicated question but it will normally be...

April 2018 for:

• A sole trader/landlord with turnover over £85,000

• A partnership with turnover between £85,000 and £10 million

April 2019 for:

• A sole trader/landlord with turnover between £10,000 and £85,000

• A partnership with turnover between £10,000 and £85,000

• A partnership with turnover over £10 million

• A sole trader or partnership with turnover under £10,000 and a VAT registration

• A company with a VAT registration

April 2020 for:

• A company without a VAT registration

Never if:

• You’re not a company, your turnover is under £10,000, and you’re not VAT-registered

• You’re a charity; or

• You’re digitally excluded

Simple really – although some of these terms don’t mean what you might think they’d mean:

• “Never” means not in the current proposals (but maybe later)

• “Sole trader” includes private landlords

• “£10,000” means something between £10,000 and £85,000: HMRC are still thinking about it

• “£85,000” means a figure equal to the VAT threshold at the time, whether or not VAT is relevant to you

• “Charity” means a registered charity. A not-for-profit doesn’t count, and neither do any subsidiaries of a charity

• “Digitally excluded” means something - but again, HMRC are still thinking about it. All we know for certain is that it includes:

• Members of the Plymouth Brethren who keep bees in Cornwall; and
• Some other people.

So much for when taxpayers need to start worrying….

If you have any queries or concerns – whether it be the timing, software issues or anything else - then please get in touch with your usual Dains contact, or request a call back on our freephone number 0800 298 3899 or email enquiries@dains.com.