Making Tax Digital

Olinda99

Andy - MTD will not affect you so ignore it

Dazed_and_C0nfused

Olinda99 said:

Andy - MTD will not affect you so ignore it

It will if HMRC stop submissions under the existing Self Assessment route.

Albermarle

Daliah said:

Albermarle said:

Daliah said:

inspectorperez said:

That's one of the reasons why I prefer to file an annual SA return and make an annual tax payment in January to keep my affairs in order. My wife does the same and we are both able to calculate how much we owe in Month 1 of each tax year and set funds aside for subsequent payment the following January.

Same here.  It takes me all of 15 minutes to fill in my SA, and I can be sure the correct amount of interest gets used.

As I mentioned, you may find at some point that HMRC asks you to stop filling in SA, whether you want to or not.
I preferred SA so I could see the annual tax calculation in detail to see if it was correct. With checking it in the personal tax account it is less clear, and not really possible to double check the calculations.

Maybe this is what they mean by Making Tax Digital, and maybe I was one of a first wave .

I don't think they can stop you from submitting an SA if you wish to make one. It's not an issue for me, as for now, they are actually asking me to complete one every year. I am sure I will cope with MTD if that replaced SA - it would just be a different system, and possibly a more modern one

In 2019, whilst still working, paying 40% tax and claiming back higher rate pension tax relief, I received a letter telling me that SA for 18/19 was the last one and in future  to use my personal tax account. I actually tried to do SA the next time it was due and it would not let me.

Adyinvestment

inspectorperez said:

I've noticed MTD for VAT costs are as little as £12 + VAT per annum, but the principle of incurring a personal expense to file your annual tax return does seem a bit perverse.

There are quite a few VAT MTD free software providers available (15 on the GOV website), I imagine there will be SA free versions too.

There is also free "bridging" software available where you can use your own spreadsheets etc.