MTD for Personal Tax
Making Tax Digital is hitting the personal tax market in April 2023. Plenty of time I hear you cry…..or is it?
You only have one full tax year left to make sure you tick all the boxes.
So what does MTD for personal tax actually mean?
After April 2023, everyone must submit a personal tax return quarterly, a bit like VAT, where you declare your income to HMRC.
Sounds simple?
It’s not!
Imagine you submit to have taken four lots of £10,000 dividends so you have submitted £10,000 dividends each quarter. Your accountant prepares your accounts and you only have £35,000 available to take as a yearly dividend.
You’ll need to submit an amended personal tax return.
If you do this regularly, expect an unwelcome visitor from HMRC.
From April 2023, you will need to be disciplined, you will need to prepare quarterly accounts and you will need to make sure you have clearly defined what salary, dividend and expenses have been taken. Getting things right first time is key!
Most of all you need to make sure you have enough cash in the business for VAT & Corporation tax or you will have taken illegal dividends.
With our super slick software, everything is collated and submitted from the one source and with our expertise looking over you, you will not fall into the HMRC trap.
It’s now time to act and make sure you use this productively because changing your habits in 2023 will be too late.
