Making Tax Digital (MTD) is an essential step for HMRC in becoming one of the most digitally advanced tax administrations in the world.
The aim is to streamline business processes by submitting digital records and reports to HMRC.
How will this benefit you and your business though?
- Accessibility – You will be able to check your taxes and HMRC information on the go, anywhere, at any time.
- Real Time Data – No longer will you have to wait until after your year end to know how much tax to pay.
- Digital records – With records being stored in the cloud, you are able to interact with HMRC at a time that suits you.
- Single Account – MTD should allow you to see a full overview of your finances, in one place, similar to your online banking accounts.
Who will be impacted first?
- April 2019 – All businesses above the VAT threshold (£85,000) will be required to keep digital records and file their VAT returns using MTD compliant software.
- April 2020 – The timings for MTD for corporation tax have yet to be confirmed but it will not become mandatory before April 2020.
- 2020 – All those who complete self-assessment tax returns – self-employed, partnerships, trusts and landlords – don’t yet have a set date for mandatory income digital tax reporting.
How can we help?
Our dedicated advisers are here to provide you with quality advice on the changes and make sure that the process to become MTD compliant is as stress-free as possible.
We can help you with;
- Options for becoming MTD compliant including;
– Checking if your current software is on HMRC’s approved list-
– Reviewing current VAT processes
– Advice on moving to the cloud
– Digitising routine business tasks;
- Consider options to use a separate ‘bridging software’ if required
- Getting ahead of the curve-other taxes are planned to go digital in 2020
- Have regular catch-ups to update you on any information as it becomes available
If you would like any more information about how we can help your business fill in the contact form below.