Starting from April 2018 HMRC are starting to bring in a new initiative called Making tax Digital. Making Tax Digital (MTD) is HMRC’s attempt to move to a digital tax environment – giving real time access to your Tax Information as well as moving you to digital record keeping and submission of tax information.
VAT is the first stage and all VAT registered companies over the registration threshold (bar a few exceptions) will need to keep records in a digital format as well as submit returns electronically to HMRC.
The next step will begin no earlier than 2020 and will encompass Income and Tax and Corporation Tax.
Why is HMRC introducing it?
Making Tax Digital is intended to help you better keep track of how much tax you owe – or how much you are due back – throughout the financial year.
Accurate Tax Information
Replacing paper-based bookkeeping with digital tax accounts will let you check the information HMRC holds about you is 100% correct.
Making Tax Digital’s new reporting function will allow HMRC will to look at your tax information almost immediately, reducing human error from data input.
Easier to understand
HMRC anticipates taxpayers will better understand how much tax is owed within the digital tax account – much like online banking.
Easier contact with HMRC
Making Tax Digital will make it easier for you to contact HMRC online via webchats and secure messages.
We have teamed up with some of the leading software providers to help our clients find the right solution for them. Our certified status with the market leaders in this field, including Xero and Quickbooks, ensures that you can be assured that the advice you receive is well researched and relevant for your needs. Before even considering a complete radical change of your software provision we can look at if you can get compliant with your current provision. But rest assured, if you do need to upgrade, we have the knowledge and experience to make the transition as smooth as possible.
Why not give as a call on 01525 851101 to discuss how we can help you get fully MTD compliant or submit your inquiry here