What you need to know about Making Tax Digital
Making Tax Digital
What you need to know about Making Tax Digital (MTD).
Making Tax Digital is HMRC's new initiative to bring tax into the digital age. Affecting nearly every UK business, MTD will require businesses to submit their tax return digitally through a making tax digital compliant cloud accounting software. In time tax submissions by post and through the HMRC website will be phased out.
HMRC hope to eliminate errors in how businesses declare tax with digital record keeping and automating VAT submissions will make this process easier and error-free.
You'll be reporting your VAT every three months, eliminating the need to report information twice. Saving you time and giving you a real-time view of your tax, making it easier to manage your taxes and avoiding a surprise tax bill.
When is Making Tax Digital happening.
As of April 2019 any UK business with a turnover of £85k+ will have to digitize the way they submit their VAT to the HMRC gateway by using a commercial accounting software.
Then, from 2020 and no earlier, making tax digital will be rolled out for income tax and corporation tax submission.
How can we help with Making Tax Digital for you
Making tax digital will change the way your business pays it's taxes to HMRC. All business related transactions will have to be digitally recorded via compliant softwares and apps throughout the VAT period.
We'll work with you and guide you through making tax digital, whether you're new to digital accounting software or are a total pro be sure you're in good hands and we'll ensure you comply with these new HMRC legislation. For more on what making tax digital means for you please get in touch, and watch out for our follow up articles and social media advice tips on making the switch to digital.