Making Tax Digital (MTD) Support
HMRC has engaged into a massive project that will revolutionise the UK Tax System: Making Tax Digital (MTD).
The aim of the project is to reduce the burden for tax payers, by providing them with real time information of their tax liability and to modernise the tax system by obtaining information in relation to the tax payer’s earnings directly from employers, banks, other government departments etc. Therefore, creating a more effective and efficient tax system for individuals and businesses.
Under the new system each business and individual (self-employed persons, landlords etc.) will have to maintain their records digitally and update their digital accounts quarterly, as opposed to annually.
As per HMRC’s timeline, by 2023, gradually, more than 5 million businesses and individuals with turnover in excess of £10,000 will have to comply with the new system and update HMRC on a quarterly basis.
Under the new proposed timeline, the government has confirmed that:
- VAT-registered businesses with a taxable turnover above the VAT Threshold, currently £85,000 are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns;
- From April 2022, VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax digital rules for their VAT return;
- From April 2023, self-employed and partnership businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax.
VAT-registered businesses with a taxable turnover above the VAT Threshold, currently £85,000 are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns.
How can we help?
Our team is following closely all the announcements made by the Government in relation to the MTD project and can offer you thorough advice in relation to your compliance and filing requirements.
We will provide you with all the training, support and advice to make sure that your book-keeping and record keeping systems are compliant to all the aspects of the Making Tax Digital regime.
Hence, if you are still using spreadsheets or manual cashbooks or non-cloud based software, you may consider changing your options and have a new record keeping system in place that will comply with your reporting requirements in future.
Due to our partnership and close relationship with Xero, FreeAgent, QuickBooks and KashFlow we will make sure that we provide you with an efficient and cost-effective solution for your book-keeping needs.
Our aim is to help you with your Making Tax Digital Requirements and ensure you stay ahead!
Should you require any further information on MTD, please contact us.