Making Tax Digital in the Agricultural Industry

Making Tax Digital in the Agricultural Industry

You can do most things online from ordering shopping to updating your library books. In the near future you may add keeping HMRC up to date with your tax affairs through “real time” digital accounts. What does that mean and will this affect you?

HMRC started the vision to digitalise the UK tax system and since April 2019, it started this process of change. Beginning with businesses with taxable turnovers above the Vat threshold.

MTD VAT is now going to be extended to all business from April 2022 plus MTD for income tax self assessment in April 2024.

Key dates:

• April 2019 MTD VAT was made mandatory for VAT registered business and organisations with taxable turnovers above the Vat threshold.
• April 2022 MTD VAT is mandatory for all VAT registered businesses and organisations
• From April 2024 MTD will be mandatory for self employed and income from Property (above £10k)
• From April 2025 MTD Mandatory for general partnerships above £10k

What action do you need to consider now?

You will need to think about making arrangements of your accounting records so that they are ready for digital submission. This may be simply contacting your current accounting software supplier to ensure your software is up to date, as suppliers are starting to release information about these changes now. Or if you are not sure how you will make the submission please contact us to discuss your options.

The wait is now on to hear of the findings of the HMRC consultation and how the this will work in practice. For rural communities, the critical factor will be a good internet connection and the Welsh Government plus the local authorities in England are investing in superfast broadband connectivity.

Please contact a member of our agriculture team if you wish to discuss how “Making Tax Digital” could influence you.