Requirements for businesses under MTD published

The primary and secondary legislation for Making Tax Digital for business is in the Finance (No 2) Bill 2017.

HMRC has published an update on what is included. A summary follows but for details see here.

Scope – details of which businesses (including sole traders and landlords) will be within the scope of the new requirements.

Entity and activity-specific exemptions – details of exclusions and exemptions from MTD for business.

Regulation-making powers – powers for HMRC to require persons and partnerships to provide at regular intervals details of their income and expenditure. They will also require them to provide information about relevant periods for calculating their taxable profits or losses. In addition partnerships will have to furnish information about their business in relation to a tax year so that the partners’ share of the taxable profits or losses can be calculated.

Digital record-keeping – powers for HMRC to make regulations requiring...