Making Tax Digital (MTD)

Making Tax Digital (MTD) by Quickbooks
Information on Making Tax Digital
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Making Tax Digital (often referred to as MTD) has been introduced by the Government to make it easier for businesses and individuals to get their tax right and to keep on top of their tax affairs, which will eventually mean the end of the annual tax return.  Everybody that is affected by MTD will eventually need to file quarterly returns with HMRC, using some form of digital software.  

 

Originally announced in the March Budget 2015, it was set to come into place from April 2018, when self-employed individuals and unincorporated landlords with a turnover of more than £85,000 would need to start using the new system.

 

However, this original plan was postponed and from April 2019 so only businesses above the VAT threshold (the £85,000 mentioned above) have needed to start keeping digital records and filing their VAT returns using MTD compatible software.

 

In the Government's Spring Statement it was confirmed that MTD will not be extented to all VAT registered businesses until at least 2021 and that MTD will not be mandated for other taxes or businesses, at least for the time being.

 

Although the start of MTD was postponed by a year or so, this is still something that we believe will eventually be rolled out to all taxes and businesses.  We are therefore still looking into how MTD will affect our clients and will continue to keep track of how things progress over the next few years.  We will be keeping an eye out for any changes that may occur, including details of planned legislation to be released regarding MTD and also what software requirements and options are currently available or will become available for our clients.

 

If you have any questions or would like further information regarding MTD please contact us

 

 

MTD UPDATE

 

HMRC has recently put Making Tax Digital (MTD) back on their agenda, revealing plans to introduce it to small businesses from 2022.
 
From April 2022 businesses that have voluntarily registered for VAT (those with a turnover below the £85,000 compulsory registration threshold) will be required to keep their VAT records digitally and submit their VAT returns using MTD-compliant software.
 
From 2023/2024 anyone that is self-employed and has a turnover of more than £10,000 will also be required to keep their accounting/tax records digitally.
 
This may still be a few years away, but it's better to ensure you are ready well in advance so that you can get to grips with new software and iron out any difficulties/errors before this becomes compulsory.
 
We are experts with Quickbooks Online so can help you get your accounts set up in the cloud and provide you with all the support and training you need as you take the leap into the world of digital accounting software.
 
Please contact us for more information.

 

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Please find below links to various articles about MTD that may be of interest to you:

 

 

Accounting Insight - What's On The Horizon for MTD?

 

 

ICEAW - Making Tax Digital Not To Be Extended In 2020

Contact us today!

If you would like more information or wish to make an appointment please contact us:

 

T: 01438 814753 / M: 07795 832597

E: info@thebookmonitor.co.uk

 

or use the Contact Us page.

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