MTDfB? Muddled Thinking Defined following Brexit? Or closer, Making Tax Defendable follows Budget. As we all know, it actually means Making Tax Digital for Business, or more accurately, the government’s latest idea for tax assessment by transferring responsibility from HMRC to business.
Nevertheless, MTDfB will happen. We are past the post, as HMRCs recent request for volunteers demonstrates: HMRC are making an investment in the process.
And then there is EoPS? End of Period Statement: it’s the number 5 MTD submission that clients will be required to make. And if a client has a self-employed business and income from property, hey-presto, he will have to make 10 MTD submissions a year…
And even this is not the full story. In an Accounting Web article recently added by Rebecca Cave, it would appear that there is a sixth filing deadline:
“In addition to submitting the end of period statement the taxpayer will be required to make a “final declaration”. This is the new name for the annual tax return (see new TMA 1970, s 8(7) – introduced by FB 2017, sch 25 para 3).
The final declaration is needed to report any income which has not been reported to HMRC through an EoPS, such as savings or employment income, and to make any necessary claims. The deadline for submitting the final declaration is set by TMA 1970, s 8(1HA) as on or before; 31 January in the year after the end of the tax year, or if later, the last day of the period of three months beginning with the date of a notice issued by HMRC.”
So, glory be, HMRC have inserted 5 filing deadlines for every business interest, including property businesses, that our clients undertake, and we still have a tax return (final declaration) filing deadline on 31 January following the end of the tax year.
Life, can only get better…
What is clear is that we need to keep clients informed.
If you would like any help with this just give me a shout.