MTD for VAT has already started and has been “live” for nearly two years. It started with businesses above the VAT threshold limits (currently £85,000) in April 2019. Most of us are now comfortable with cloud accounting and the advantages for clients so the process is about getting “ahead of the curve” for our remaining clients.
From the 1 April 2022, MTD for VAT will apply to all VAT registered businesses regardless of the level of turnover.
The first VAT period to which MTD applies to all VAT registered businesses (who are not already doing so) will be the one commencing on or after 1 April 2022.
MTD for Income Tax should become law from 6 April 2023. MTD for income tax will apply to the self-employed, partnerships and to those who receive income from property, with gross income from these sources combined above a threshold of £10,000.
MTD for Corporation Tax is currently in the consultation process (closes 5 March 2021) and it is likely to be mandated April 2026.
We have produced MTD for VAT marketing materials to help educate and convert clients to the cloud such as an example client newsletter or website blog, social media posts, email to all VAT registered business not already on the cloud, telephone follow up call script and 2021 marketing and client planners to help you manage the process of conversion.
In addition we have posted educational material on MTD to the Client Learning Centre (CLC) in the tax section for Platinum Members.
You can link your website to the CLC which contains educational material on:
- Strategy, profit and tax;
- Funding and finance;
- Brexit; and
- Covid-19 support.
The CLC helps differentiate your firm by providing clients and prospects with education on key business areas and tangible resources they can download and use. It was designed to help Platinum members position their firm in the high value sector of the market with the aim of helping you obtain and deliver more advisory services.
The 2020 Team