Benefits for charities from voluntary online tax filing
HMRC is currently looking at whether charities should adopt quarterly online tax information filing. This is part of their consultation on Making Tax Digital (MTD), which proposes that all businesses with income tax, national insurance, VAT or corporation tax obligations should make online returns, unless their annual income is less than £10,000.
Charities that have to make quarterly VAT returns, corporation tax payments and income tax self-assessment could, in HMRC’s opinion, reap significant benefits by adopting online filing. Due to the unique status of charities, HMRC has confirmed that online filing for the sector would be voluntary.
For more information on digital tax filing for charities please contact Elizabeth Irvine.