Changes to Making Tax Digital for VAT coming soon!

23 November 2021

Does the extension of MTDfV affect you?

Making Tax Digital is no longer a new topic of discussion, back in 2019 HMRC introduced its MTD policy for all VAT registered businesses with a taxable turnover of over £85,000. In order to be compliant those businesses have to keep digital records and use third-party MTD compliant software to submit their tax returns to HMRC. Although not necessary, many businesses under the £85,000 threshold still registered voluntarily to join the MTD scheme.

However, from April 2022 HMRC have confirmed the extension of Making Tax Digital for VAT (MTDfV) to smaller VAT businesses which fall under the £85,000 threshold, this will include those who voluntarily registered as well as the self-employed and landlords.

The new extension will mean those that come under the VAT threshold will need to keep their records digitally and submit their tax return to HMRC through a third-party MTD software programme from their first VAT period starting on or after 1^st April 2022.

Further details can be found in HMRC’s ‘Extension of Making Tax Digital for VAT’ Policy Paper.

At Books and Business we can assist you in getting set up ready to go for the MTD April 2022 deadline. Quickbooks is our preferred partner as we feel it offers the best compatibility with MTD. We are Quickbooks Pro Advisors, therefore not only can we set you up we can also train you on the software.

If you want even more time to focus on your business, why not let us do all your bookkeeping for you? We take the stress out of everything MTD so you can focus on your business.

Lastly, we can also simply help you to register for MTD. So why not get in touch to see how much or little we can help you to get started and be MTD compliant by April 2022.

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Homebuyers in Stamp Duty Sprint Before April Hike

by PH186232 • 20 February 2025

With the 1st April deadline looming, its reported that 550,000 homebuyers are racing to complete purchases before stamp duty jumps back to its 2022 levels. We have read that sales awaiting completion are up 25% from last year, with an average five-month wait putting pressure on buyers to beat the deadline. Currently, first-time buyers pay no stamp duty on homes up to £425,000 when purchasing a property worth up to £625,000, but from 1 st April, that drops to £300,000. The upper limit will also fall from £625,000 to £500,000. It's not just the first-time buyers taking a hit, currently stamp duty is only owed on amounts over £250,000, however from 1 st April, only the first £125,000 will be exempt. Despite the cost increase, it looks like most buyers are still pressing ahead, with some even renegotiating offers to offset the hike. According to our research, regardless of the impending cost increases, property experts such as Rightmove are predicting the demand to stay strong; especially if interest rates continue to fall. With mortgage rates already dipping below 4%, we believe buyers remain hopeful for a more affordable market ahead.