As part of the Treasury’s long-term tax digitisation plan – designed to boost national productivity, make it easier for businesses and people to pay tax and reduce avoidable errors and fraud – HMRC’s Making Tax Digital programme will be gradually extended.
At present, businesses above the VAT threshold of £85,000 are covered by the system, which requires them to keep digital records and provide VAT returns through software. Since it was introduced in 2019 more than 1.4 million businesses have joined the programme, submitting over 6 million returns.
From April 2022, the programme will be extended to all VAT registered businesses with turnover below the VAT threshold (£85,000), and from April 2023, it will apply to taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually.
For more information go to the Government website (opens in a new tab)