Making Tax Digital
Making Tax Digital – or MTD – is one of the biggest changes to the UK tax system in recent years, and it's already under way.
Whether you're included in the first stage of the scheme or want to make sure you're ready for any future changes, we can support you with online accounting software.
What is Making Tax Digital?
MTD is part of the Government's plan to modernise the tax system, by making it fully digital.
It's starting soon, with the first mandatory stage - MTD for VAT - commencing from 1 April 2019.
The wider rollout of the scheme is divided into two main groups: business and individuals.
Making Tax Digital for business
Businesses are likely to see significant change to their accounting processes as MTD becomes a requirement, initially for VAT.
Those that are VAT-registered and have an annual taxable turnover above the £85,000 VAT-registration threshold will be the first to be mandated into the scheme.
Once the first stage kicks in on 1 April 2019, those businesses will need to keep digital records and use MTD-compatible software to submit VAT returns to HMRC.
The Government has said it will also include income tax and corporation tax, from April 2020 at the earliest.
Making Tax Digital for individuals
Individuals who pay tax outside of PAYE can already use personal tax accounts to access a number of HMRC services.
Further developments have been planned to improve these accounts, although work on these has been delayed for the time being.
Help with Making Tax Digital
We can make sure you're prepared for the new requirements, from helping you choose the right software to updating you on any new developments.
Contact us to talk about MTD.