Making Tax Digital (MTD)

Making Tax Digital (MTD) was designed by the government to help individuals and businesses accurately keep track of their tax liabilities in a more efficient and straightforward way. By assisting companies to get their tax correct first time, the £9 billion discrepancy that the Exchequer faces each year, could be eliminated.

In an ever increasing digitally driven world, many businesses are already using accounting software, interfacing with their customers electronically and carrying out their banking online. Thus, HMRC saw MTD as the next step in becoming more modern and more digitally integrated with businesses and eliminate the existing laborious paper-based processes.

Following extensive consultation, the 1st April 2019 saw the introduction of MTD for VAT registered businesses (MTDfV) with a taxable turnover above the VAT threshold (£85,000). The new regulations require applicable businesses to keep records digitally and use software to submit their VAT returns.

For those businesses who are not VAT registered MTD will not come into force until at least April 2020.

HOW WE CAN HELP

SOLUTIONS

We can offer accounting solutions which comply with MTD , provide training and also ongoing support. This would be based on a review of your current system from which we would make recommendations so that your business would comply with MTD requirements and also benefit from an improved accounting system.

ASSESSMENTS

We can assist with registering for MTD by ensuring you are required to comply and look at any exemptions.

Timeline

April 2019: MTD starts.

This is the MTD start date for businesses with VAT return quarters ending 30 June 2019 onwards.

1st May 2019

This is the MTD start date for businesses with VAT return quarters ending 31 July 2019.

1st June 2019

This is the MTD for VAT comes into effect for larger and more complex businesses.

1st October 2019

This is the MTD for VAT comes into effect for larger and more complex businesses.

1st April 2020

MTD for other taxes, including income tax and corporation tax, could come into effect.

Do you have a question regarding Making Tax Digital?
Call the team on 0117 927 7301 or 01225 614 615