Instead of completing a yearly personal tax return, under the Making Tax Digital rules, you’ll have to keep and submit digital records of your earnings and expenses using MTD-compatible software.
There are three parts that you will need to submit for MTD:
- Submitting quarterly updates of your income and expenses
- An End of Period Statement: you need to submit one per year for each source of income
- A Final Declaration that details all other taxable income (such as investments and savings interest)
This does not mean you will have to start paying your tax quarterly as well. Instead, you’ll get an estimate of the tax due up until the end of that period. You’ll still pay your tax bill on the usual deadline (31st January of the following calendar year).
This will inevitably take more of the self-employed and buy-to-let landlords time to comply with these changes, but the advantage is that you will have more real-time information that can help you calculate your tax more accurately in real-time and have more up-to-date business information that can help you make informed business decisions. At TaxDash, we are working hard to not only make sure all our self-employed and buy-to-let landlords can file these quarterly MTD returns via TaxDash, but we are also dedicated to offering you real-time dedicated tax planning services with our team of EOACC accountants, making sure you don’t pay a penny more tax than what is needed.