The UK government has announced its intention to extend Making Tax Digital (MTD) to retailers under the £85,000 VAT threshold and to some other categories of business. The stated intention is to extend MTD to all companies that have corporate tax liabilities.
The changes are intended to be effective from April 2022, with all businesses reporting through the current self assessment system to be integrated into MTD 12 months later.
The NFRN previously fought for the current £85,000 threshold to be introduced to protect smaller businesses from the impact of the changes but the NFRN believes that this extension is inevitable. The government sees enormous benefits in terms of cost reductions for HMRC and the avoidance of fraud and this is driving its thinking.
The government will be publishing more details on the move this autumn and the NFRN will keep you up to date with what these changes will mean for you and your business over the coming months.
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