Nigel Holland
Nigel Holland

“MTD or make tax digital has been with us for sometime now but has only applied to larger businesses.

It is currently being introduced for smaller businesses including businesses who are not registered for VAT.

Many of these businesses are not correctly set up for MTD and there are many business people who are not able to deal with the IT involved with MTD.

We at Holland & Co are ideally situated to help small businesses implement MTD.”

Quote by Nigel Holland

Timeline for MTD

  1. From April 2019: MTD VAT is mandatory for VAT-registered businesses and organisations (including sole traders, partnerships, limited companies, non-UK businesses registered for UK VAT, trusts and charities) with taxable turnover above the VAT threshold. There was a six-month deferral of the start date, to 1 October 2019, for some more complex businesses.
  1. From April 2022: MTD VAT is mandatory for all VAT-registered businesses and organisations.
  1. From April 2024: MTD ITSA will be mandatory for the self-employed and those with income from property. It will only apply to those with turnover from self-employment plus gross rental income over £10,000.
  1. From April 2025: MTD ITSA will be mandatory for general partnerships (ie, not limited liability partnerships or partnerships with a corporate or other ‘non-natural partner’). It will only apply to partnerships with a turnover of £10,000.

The MTD for VAT is already mandatory, however the requirements for MTD for none VAT registered businesses is fast approaching.