MTD and the cloud

MTD for income tax

In addition to new digital reporting requirements for VAT, the Government has announced that from April 2023, businesses, including sole traders and landlords with business income over £10,000 per year MUST file their business income tax returns with HMRC using MTD digital reporting software.

For more information on MTD and how we can help your business become compliant, get in touch with us now.

What software will I need to be MTD compatible?

You will need to use what is defined as ‘functional compatible software’ to comply with HMRC requirements.

This means software that connects to HMRC’s systems via an Application Programming Interface (API). It can be a single program or a set of programs, so long as those programs are ‘digitally linked’.

Your software must be able to:

  • Retain and preserve records digitally
  • Create VAT returns and send them to HMRC digitally
  • Voluntarily provide HMRC with VAT data
  • Receive information from HMRC that your business has complied.

How will the rules differ regarding digital records?

  • The major difference is that you will be required to submit your digital records at least once every three months.

Your business will also be required to maintain records for your VAT account. All digital records will need to be retained for a minimum of six years.

For more information on how we can help you ensure that your digital reporting and data storage is compliant, get in touch with us.

LATEST NEWS FROM Bishops

January 20, 2025

Inflation falls to 2.5%: What this means for your business

The latest figures reveal that UK inflation fell slightly in December, down to 2.5% from 2.6% in November.
read article
January 16, 2025

Balancing AI's promise and pitfalls

Artificial intelligence (AI) continues to bring benefits across many industries, including healthcare diagnostics and consumer technology. However, as its applications expand, so do concerns about its accuracy and potential for misuse. Two recent examples—the use of AI in detecting ovarian cancer and its controversial implementation in summarising news—illustrate both the transformative potential and the risks of AI.
read article