The government plans to bring tax into the 21st century with their Making Tax Digital scheme which aims to make the administration of tax easier and more efficient.
The first phase was Making Tax Digital for VAT and all VAT registered businesses are now required to keep digital records and submit their VAT returns digitally.
The next phase is Making Tax Digital for Income Tax and in April 2024, businesses and landlords with business or property income above £10,000 will need to follow the rules for the scheme. Businesses and landlords are able to sign up prior to this date and take part voluntarily.
It is not expected to apply to Corporation Tax before 2026.
Making Tax Digital