Making Tax Digital
If your business has a turnover above £85,000, then Making Tax Digital is a fast approaching piece of tax legislation that cannot be ignored!
Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs as well as transforming HM Revenue and Customs (HMRC) into a world leading, digital tax authority.
Making Tax Digital will begin with VAT in April 2019. It will apply to VAT registered businesses with a turnover above £85,000. Businesses will need to file VAT returns using commercial accounting software and will be obligated to keep digital records of their transactions.
If you currently submit VAT manually, which usually means you type your information directly into the HMRC Gateway, then you’ll have to integrate commercial accounting software into your business by this deadline.
April 2019 will see HMRC only accept submissions made directly through accounting software. Manual submissions will no longer be accepted.
Once MTD for VAT is up and running, MTD for income and corporation tax will follow, but not before April 2020 at the earliest.
Speak to an expert…
Chartered Tax Adviser
As a business, what should you be doing now?
Determine whether you're impacted by the changes
Make or review your existing plan
Start reviewing your VAT process
Think about adopting the new procedures as early as possible
The good news is this is something we can help you with.
Over the last few years we have been hard at work developing ways of successfully integrating our commercial accounting software solution into existing clients. Many have taken up the gauntlet and agreed to pilot the scheme long before the deadline date.
The feedback has been overwhelming with every client seeing a marked improvement in their tax submission process.
Here’s some of the great benefits Making Tax Digital offers;
Big reduction in paperwork.
Say goodbye to complicated, time-consuming Excel spreadsheets and hello to a new, more efficient way of managing your accounts with no more year end panics.
Greater management control.
The words ‘Tax’ and ‘Digital’, especially when used together, can be a worrying prospect. But trust us; Making Tax Digital is a great opportunity for small businesses to manage their accounts, invoicing, payroll, VAT, expense claims and tax through one simple online programme. It will even ‘talk’ to your bank account, so that you can ensure everything is up-to-date.
Saving time – and lots of it!
Using simple online accounting software can save you time every month. It’s an opportunity to get ahead of the curve, and take up the government’s Making Tax Digital initiative before you have to.
More time to focus on your business.
We promise you, using a programme such as Xero, Quickbooks, Kashflow, Sage etc, will give you more time to concentrate on your business, remove the year end panic and more importantly, help you get money into your business more quickly.
If you would like to know more about Making Tax Digital, or the potential implications for your business, then click on the brochure links below from our digital partners at Sage.