Sole-Traders to file quarterly
Updated: Mar 17, 2021
From April 2023, sole-traders and landlords who submit self-assessment tax returns above £10,000 will need to follow the rules for Making Tax Digital and file quarterly.
This will mean there will be some big changes, namely:
Submissions via software only.
There is currently a pilot running to test this service, working with some software vendors and a small selection of customers. The hope is this will identify and resolve any issues and improve the customer experience before it becomes a legal requirement and is rolled out.
The size of the market that will be affected will be huge. This information was provided by one of our partners FreeAgent and has information on the groups affected by the chages.
The requirement will be for receipts and income to be recorded digitally, for example, via a phone, or within an App. The receipt data will then be included within the quarterly tax return. We believe the tax payment will still be made only once a year, but with quarterly updates being a requirement, we expect the new regime to put a strain on people who keep paper receipts, are less organised, or have a history of poor record-keeping.
HMRC is planning to expand on the pilot currently running and Short and Sons will log to be included in the next round of testing. We shall be in touch with you when we get the opportunity to be enrolled in the beta.
For more information from Gov.Uk – click here
Information correct as of Nov 2020. Want tax tips? Before you go please like our page and why not leave your details at the bottom of our home page?