Henry and Banwell Chartered Accountants > News > Tax > Making Tax Digital – UPDATE May 2018

Making Tax Digital – UPDATE May 2018

  • Posted by: Michael Winkelmann

Making Tax Digital (MTD) is part of the government’s plan to make it easier for business to stay on top of their day-to-day accounting.

HMRC is seeking to improve efficiency, effectiveness and ease of compliance and their plans signal the end of paper accounting for millions of UK taxpayers and businesses.

From April 2019, legislation will require businesses above the VAT threshold  (so sole traders, partnerships and Limited companies ) to set up a digital tax account and file quarterly returns online. Preparation starts now, with businesses and accountants moving online to improve efficiency, boost profitability and make the transition painless.

HMRC won’t be providing any solutions and will require businesses to keep accounting records in a digital format ( e.g. accounting software , spreadsheets). You will no longer be able to type in figures to HMRC portals (such as VAT) , there will need to be a digital link or interface.

We have solutions that can deal with the transition to MTD and it is important that businesses start planning now.

Please contact us to discuss options.