Landlords who make tax returns on their investment properties via VAT-registered companies must sign up to the HMRC’s Making Tax Digital initiative by April 1.
Making Tax Digital for VAT is part of the Revenue’s overall digitalisation programme for UK tax payments.
As of last month, some 1.6m taxpayers had joined Making Tax Digital for VAT with more than 11m returns submitted. Around a third of VAT-registered businesses with taxable turnover below £85,000 have voluntarily signed up to Making Tax Digital for VAT ahead of April 2022.
Since April 2019, businesses with a taxable turnover above £85,000 have already been required to follow Making Tax Digital, keeping digital records and filing VAT returns using Making Tax Digital compatible software.
In July 2020, it was announced that all VAT-registered businesses must file digitally through Making Tax Digital from April 2022, regardless of turnover.
HMRC is now reminding businesses below the £85,000 threshold of the steps which they need to take to be ready.
Joanna Rowland, HMRC’s director general for transformation, says: “Making Tax Digital is fundamental to the delivery of a trusted and modern tax system, making it easier for businesses to get their tax right and supporting the UK to go digital.
“By signing up for Making Tax Digital, we expect most businesses to experience long-term benefits, including reduced errors and time saved in managing their tax affairs.
“We encourage businesses to explore digital record-keeping for their VAT affairs and use this time to choose the right software to support their business needs.”
HMRC has also just announced that it will waive late filing and late payment penalties for self-assessment taxpayers for one month due to Covid pressures, giving them until 28th February to complete their 2020 to 2021 tax return and pay any tax.
She is advising landlords to visit www.gov.uk and choose their Making Tax Digital-compatable software no less than seven days before their first Making Tax Digital VAT return deadline date.
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.