MTD income tax pilot for self-employed
I am self-employed? What does this mean for me? What is MTD/Making tax digital?
Self-employed people submit an annual self-assessment tax return, last week HMRC stated that self-employed can now voluntarily use software to keep their business records digitally.
What software is available?
At the moment there are only two names on HMRC’s website that are ready to support the MTD pilot.
These are practice software giant IRIS and Rhino, a solution provided by Leicestershire-based Rhino Software. However, HMRC is confident they will soon be joined by others.
This is not mandatory, only VAT registered businesses will need to keep digital records and only for VAT purposes, they will only need to do so from April 2019.
Businesses will not be asked to keep digital records or update HMRC quarterly for other taxes until at least April 2020 (the original dates had implementation from April 2019).