With nearly 40 days until Making Tax Digital for Income Tax starts, Sara White asked HMRC to clarify some of the more complex aspects from use of bridging software, to what happens when income drops below threshold and how to get out of MTD once registered
As the deadline for mandatory Making Tax Digital (MTD) for Income Tax for affected taxpayers with income over £50,000 hurtles towards us on Monday 6 April, HMRC has confirmed it will be possible to use bridging software to file quarterly returns, although their preference is for taxpayers to file using MTD compatible software.
HMRC said the use of bridging software is permitted, but stressed: ‘Customers can choose to use an all-in-one software product that creates digital records or a bridging software product that connects to existing records kept in spreadsheets or other accounting tools.
‘HMRC’s software choices guidance provides further information and customers can use our interactive tool to check which software products meet their needs, including bridging products.’
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