OK, so you have just sailed through GDPR, used the new stamp duty and tax regime for property income to out manoeuvre your competition; what is the government planning next? Well, one thing is Making Tax Digital (MTD) also referred to as Real Time Information (RTI) in some press sources.
What is the difference between MTD and RTI?
Well for the purposes of this article nothing really. Making Tax Digital (MTD) is the name given to the specific government project whereas RTI is a generic term for any recording of information in a digital format thereby making it more accessible and ‘real time’. It is just the case that MTD will turn accounting information into real-time information (RTI).
So what is Making Tax Digital (MTD)?
Making tax digital is the government’s scheme to move all our tax accounting onto digital platforms. It was due to be introduced for businesses and landlords in April 2018 but as is so often the case with government IT projects it has been delayed.
The Government statement on July 13, 2017 read; ‘the changes mean that the smallest businesses and landlords will be able to move to keeping digital records for tax at a pace that is right for them.’
Lots of references to businesses, my portfolio isn’t structured as a business?
Maybe not but the legislation is now more often than not lumping the property investor in with any changes affecting businesses. This appears to certainly be true with MTD.
Then what do I need to do now?
Keep your eyes peeled and remain vigilant, This one is coming. The new timeline is businesses will need to move onto the digital accounting platform in April 2019 to meet VAT obligations. If you are a non-VAT business the government have stated that you won’t need to move onto the digital platform before 2020. We will of-course keep you fully updated and posted along the way so watch out for our next article on this.