What is "Making Tax Digital"?
It is a system that the Government have introduced to make all our lives easier…! I promise! Making Tax Digital means businesses have to keep digital records and use accounting software to complete tax returns. HMRC say that Making Tax Digital is an important part of the government’s plans to “make it easier for individuals and businesses to get their tax right and keep on top of their affairs.”
For now it just applies to VAT registered businesses whose turnover is above £85,000, but HMRC are rolling this out to all VAT registered business from April 2022, and for self-employed businesses and landlords from April 2023, so be prepared!