Posted: 6 September 2018
Making Tax Digital (MTD) - It's nearly here.........
Tax is changing for businesses, accountants and bookkeepers.
Making Tax Digital (MTD) is part of the government’s plan to make it easier for businesses to stay on top of their day-to-day accounts. HMRC wants to be one of the most digitally advanced tax administrators in the world. By becoming digital it will improve efficiency, effectiveness and make compliance easier. The plan signals the end of paper accounting for millions across Britain.
If you’re already an existing client of DTA, then you have nothing to worry about because we’re MTD ready!
So, when does MTD start and does it affect you?
From April 2019, legislation will require businesses above the VAT threshold to set up a digital tax account and file quarterly returns online.
Today, only 11% of VAT returns are filed using software. If you or your accountant don’t currently file VAT using software then Making Tax Digital could have real impact on how you work, so it’s vital you start researching today.
Don’t confuse MTD with lodging a return online. Most UK taxpayers have already done that for years. MTD has three important distinctions:
1. Bank transactions and other financial information will flow automatically into people’s digital tax account, whether or not they declare that income or those expenses.
2. Submission will need to be made at least one per quarter.
3. Submissions will need to be filed using some form of software.
If you need more help with MTD or would like to chat about how we can help your business ahead of MTD please get in touch by clicking here