Making Tax Digital (MTD) is set to expand to all VAT-registered businesses from April 2022, the Treasury has announced.
Since April 2019, VAT-registered traders with annual taxable turnover above £85,000 have been submitting VAT returns through MTD, while other firms have been able to submit VAT returns voluntarily.
From April 2023, the Treasury expects MTD to cover all unincorporated businesses and landlords turning over more than £10,000.
Around four million unincorporated businesses and landlords with annual turnover exceeding £10,000 a year stand to be drawn into MTD, should the rollout go according to plan.
This new urgency has been driven by the difficulty of implementing support measures for business during COVID-19 without comprehensive data.
Jessie Norman, Financial Secretary to the Treasury, said: “The COVID-19 pandemic has highlighted the need for a more flexible, resilient and responsive tax system that provides businesses and HMRC with more up-to-date