Although it is two years away, we thought we should let you know that taxpayers with self-employed business income, partnerships or letting income, greater than £10,000, will have to submit electronic quarterly tax return from 6 April 2023.
This new way of reporting is being referred to by HMRC as Making Tax Digital for Income Tax and is part of the Government’s drive to make the UK’s tax system the best in the world.
This future introduction will change the way you will required to keep records and accounts for tax. Although reporting frequency will change to quarterly, payments on account and balancing payments will remain payable on 31 January and 31 July each year as before.
Although these changes will be fully supported by us to help you make sure that you remain compliant, we appreciate that these developments are unlikely to be very welcome for most taxpayers! We will keep you updated as HMRC releases information on the implementation of the new system.