Making Tax Digital is being extended

I saw the government announced the extension of MTD yesterday to the following:

  • taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually from April 2023
  • all VAT registered businesses with turnover below the VAT threshold (£85,000) from April 2022

HMRC pilot starting in April 2021 for businesses and landlords to test the service before the requirement to join.

It’s going to be a huge project for HMRC to implement for sure, but feels like great news :+1: for Coconut :coconut: (potentially an even larger total addressable market), their customers :people_holding_hands: (able to remove more admin) and investors :chart_with_upwards_trend: :wink:

Interested in what business owners and accountants think, as I’ve already seen some mixed comments here - https://www.accountingweb.co.uk/tax/hmrc-policy/breaking-mtd-scheduled-for-2022-23-rollout

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Unfortunately for the U.K. we’re lagging behind in areas that we shouldn’t be. This is long overdue in my personal opinion, but a warm welcome.

Sweden - where I am predominantly based nowadays is all electronic filing if possible. There are some very minor areas you might need to send an actual form in, but I would estimate a good 95% of everything, from car tax, changing car ownership, all your prescriptions, to your individual and business taxes can be done online.

Disclaimer: I single out Sweden, but this is pretty much standard in Scandinavia I believe.

But you are correct; this is will, or at least should; open the door to more people finding use from Coconut & as an investor, that’s all good news!

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So I am self employed in my spare time working my day job in normal hours and expecting to make about 12k(first full year this tax year) on top before expenses and tax etc. Does that mean I will be in the bracket/required in 2023?

Perhaps @Jamie can answer this?

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