Friday, 12 August 2022

More Details of MTD For Income Tax Reporting

HMRC are currently consulting on the precise details of what needs to be reported each quarter. As expected, it seems the accounting software will need to record and report income and expenditure in the same categories currently used for self-assessment.

The main categories are:

Turnover/gross rents

Costs of goods sold

Materials 

Wages and salaries of employees

Sub-contractor costs

Rent, rates, power and insurance

Repairs and renewals

Professional fees

Telephone and other office costs

Interest on bank and other loans

Motor and travel expenses

HMRC also propose that those businesses with turnover below the £85,000 VAT threshold will only need to report the totals of income and expenditure each quarter which will be a welcome simplification for small businesses.


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