Does HMRC's "Making Tax Digital" affect you?

Did you know how much you earn does not only affect how much tax you pay? 

In future, it is likely to affect HOW you (1) account for your gross income and (2) pay your tax. 

This is all part of the Making Tax Digital initiative of HMRC. This blog post is all about what's happened recently and what's coming - and whether you need to know more NOW!

I'm going to say upfront, if you are an amateur artist or a professional not earning very much from your art you have nothing to worry about - for the moment.

However those earning MORE than "not earning very much" MUST get to grips with Making Tax Digital soon. Plus note that they are focused on gross income and not net (more about this below)

Digital record-keeping will deliver time-saving benefits for taxpayers (HMRC)

IN THE NEAR FUTURE, I'm going to be developing a "Making Tax Digital page" in the Tax section of my Art Business Info website - alongside the existing UK Tax Tips for Artists to provide artists with links to useful info.

In the meantime, I'll be blogging about it on here for artists who need to get their heads around it.

Of course, as always (here comes the disclaimer), as law and related online content changes all the time,  I am totally unable to warrant that ANY and/or ALL information is complete and/or

• professional and/or
• up to date and/or
• wholly accurate and/or
• all links lead to the most current information (at the time of writing)

UNLESS I am quoting recent HMRC emails (see below) or HMRC websites with a recent date. 

YOU are solely responsible for making sure that you get the proper advice. Personally, I find the HMRC website provides everything most people need to know - but you do need to read it!

Making Tax Digital

As somebody who completes a self-assessment form each year, I received my Getting ready for Making Tax Digital (MTD) for Income Tax email from HMRC yesterday which very clearly states the timetable for the staged implementation of Making Tax Digital. 

I assume everybody else who makes a self assessment tax return for sole trader income also got the same email. So look in your inbox if you missed it!