HMRC is sending letters to the 1.3 million small businesses, including buy to let landlords and the self employed, affected by the next phase of Making Tax Digital (MTD)
The MTD extension means that sole traders, the self employed and buy-to-let landlords will have to report their income tax through the digital reporting system from April 2023, replacing the current self assessment regiem.
‘This letter is a stark reminder that the MTD transition is well underway for small businesses. The problem is many of them still aren’t ready,’ warns Glen Foster, small business and accounting partners at Xero.
‘Switching to digital tax filing doesn’t need to be a stressful burden. But the letters issued by HMRC from today act as a reminder that the next phase of Making Tax Digital (MTD) is well underway and crucially, that those affected – approximately 1.3 million businesses – need to get ahead of beating the paper bloat by preparing now.
‘HM
