If you use Easy MTD, the cost each year to comply with Making Tax Digital for Income Tax will be five tokens.
What are tokens required for?
You will need a token to submit each quarterly update and the final declaration. Four quarterly updates each year so four tokens are required for those. One final declaration each year so one token is required for that.
What if I have to submit quarterly updates for multiple sole trader and property incomes?
No matter how many sole trader and property incomes you need to submit quarterly updates for, you'll only need four tokens. Each token allows the submission of all quarterly updates in a period for a single taxpayer.
Example: If you have one sole trader income and one UK property income you will need one token to submit the quarter 1 update for both income sources. One token for quarter 2 and so on.
You only need to submit one final declaration no matter how many income sources you have, so only one token is required for that.
Are tokens physical or digital?
Tokens are digital so don't worry, you won't be receiving bags of them in the post! When you purchase a token it is credited to your Easy MTD account. When you submit a quarterly update or a final declaration, a token is debited from your Easy MTD account.
Do tokens expire?
Tokens do not expire and they remain in your Easy MTD account until used.
Can tokens be used to submit VAT returns?
Tokens can be used to submit VAT returns, quarterly updates and final declarations. If you have previously purchased tokens for use with Easy MTD VAT, you can use them to submit VAT returns, quarterly updates and final declarations using Easy MTD.
How much does it cost to buy a token?
The price of a token is dependent on how many you buy in a single batch. The more you buy the cheaper they are per token.
Visit the Buy Tokens page to see how much a token costs. Use the slider on this page to increase and decrease the number of tokens to buy in a batch. You'll be presented with the total cost and the cost per token.