{"id":22070,"date":"2022-07-12T08:53:16","date_gmt":"2022-07-12T08:53:16","guid":{"rendered":"https:\/\/smh.group\/?p=22070"},"modified":"2023-02-15T13:39:50","modified_gmt":"2023-02-15T13:39:50","slug":"the-widening-scope-of-making-tax-digital-mtd-is-highlighting-several-issues-including-the-limited-availability-of-the-mtd-for-income-tax-pilot-scheme-and-low-awareness-of-the-recent-expansion-of-m","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/the-widening-scope-of-making-tax-digital-mtd-is-highlighting-several-issues-including-the-limited-availability-of-the-mtd-for-income-tax-pilot-scheme-and-low-awareness-of-the-recent-expansion-of-m\/","title":{"rendered":"Are you on top of Making Tax Digital\u2019s latest developments?"},"content":{"rendered":"<p><strong>The widening scope of Making Tax Digital (MTD) is highlighting several issues, including the limited availability of the MTD for income tax pilot scheme, and low awareness of the recent expansion of MTD for VAT to all VAT registered businesses.<\/strong><\/p>\n<h2><strong>Pilot scheme<\/strong><\/h2>\n<p>Although the functionality of the MTD for income tax pilot scheme is constantly evolving, HMRC is still restricting sign-up to small numbers, citing the need for detailed, individual guidance for users.<\/p>\n<p>From July, taxpayers can join the pilot if they have the following types of income:<\/p>\n<ul>\n<li>self-employment, even if there is more than one business;<\/li>\n<li>UK property;<\/li>\n<li>employment income; or<\/li>\n<li>UK savings and dividend income.<\/li>\n<\/ul>\n<p>Functionality to be added over coming months will mean that pilot scheme users will be able to claim relief in respect of personal pension contributions and the marriage allowance, and it will also be possible to report capital gains, pay voluntary class 2 NICs and make student loan repayments.<\/p>\n<p>The scope of the pilot scheme is still quite restricted, with taxpayers only able to sign up through their software provider.<\/p>\n<h2><strong>MTD for VAT<\/strong><\/h2>\n<p>MTD for VAT was extended to all VAT registered businesses from 1 April. Previously, it only applied to those above the \u00a385,000 VAT registration threshold.<\/p>\n<p>Some new entrants will currently be in the process of preparing their first MTD compliant VAT return \u2013 although research indicates considerable misunderstanding as to how MTD for VAT differs from the previous electronic VAT return filing requirement. Some 30% of responders thought they had already signed up to MTD, when in fact they had not.<\/p>\n<p>There will be something of a delay for those businesses who submit VAT returns annually. For example, with an annual accounting period running to 31 March 2023, the first MTD return will not need to be submitted until 31 May 2023.<\/p>\n<p>As MTD progresses, stay up to date with HMRC guidance here.<\/p>\n<p>If you need help with\u00a0<a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/making-tax-digital\/\"><strong>Making Tax Digital<\/strong><\/a>, our\u00a0<a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/chartered-accountants\/\"><strong>Sheffield based Accounting &#038; Business Advisory<\/strong><\/a>\u00a0can help on\u00a0<strong>0114 266 4432<\/strong>\u00a0or\u00a0<a href=\"mailto:info@smhca.co.uk\"><strong>info@smhca.co.uk<\/strong><\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The widening scope of Making Tax Digital (MTD) is highlighting several issues, including the limited availability of the MTD for income tax pilot scheme, and low awareness of the recent expansion of MTD for VAT to all VAT registered businesses.<\/p>\n","protected":false},"author":4,"featured_media":21960,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[83,625,11,106,104,243,19,76],"class_list":["post-22070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","tag-chartered-accountants","tag-digital-tax","tag-hmrc","tag-making-tax-digital","tag-mtd","tag-nic","tag-tax","tag-vat"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Are you on top of Making Tax Digital\u2019s latest developments? - Tax advisers in Sheffield - SMH Group<\/title>\n<meta name=\"description\" content=\"The widening scope of Making Tax Digital (MTD) is highlighting several issues, including the limited availability of the 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