Making Tax Digital!

WE'RE READY, ARE YOU?

Is your business ready for Making Tax Digital (MTD)

Who is affected by MTD?

Phase 1- Businesses with a turnover above the VAT threshold of £85,000

  • Businesses will need to keep a digital record of VAT transactions
  • MTD compliant software or apps will have to be used to submit VAT Returns
  • Using HMRC's own VAT online service will no longer  be possible

 

Your business will need to be MTD compliant by 1st April 2019.

Phase 2-Businesses with a turnover below the VAT threshold of £85,000

  • Businesses will need to keep a digital record of VAT transactions
  • MTD compliant software or apps will have to be used to submit VAT Returns
  • Using HMRC's own VAT online service will no longer  be possible

 

Your business will not have to be MTD compliant until April 2020 at the earliest.

Phase 3 - Sole traders, partnerships, trading companies and landlords. Inclusion of corporation tax and self-assessment into Making Tax Digital

  • Businesses will have keep a digital record of financial transactions
  • MTD compliant software or apps will have to be used to submit quarterly updates to HMRC for both income tax and corporation tax purposes

 

This is unlikely to come into force until April 2020 at the earliest.

How do you know if your accounting software is MTD compliant?

HMRC publishes a list of MTD compliant software products.

What if your software isn't on the list?

  • Move to MTD compliant software. We can help you with this!
  • You can continue to use Spreadsheets but you will need to use bridging software to make MTD submissions. You guessed it, we can help you with this!

What should you do next?

  • Register for an online Government Gateway Account. You can create one here. Allow time for completing the application as your activation code will be sent by post and could take 30 days to arrive. 
  • Find out when you need to be MTD compliant. See above!
  • Seek the advice of an accountant. We can help!
  • Decide how you will record your transactions digitally.
  • Familiarise yourself with the process and make sure you know what is required.

Need help?

Why not give us a call on 01226 203611 or use the contact form and we will give you a call back. Remember, the first, up to 1 hour consultaion, is free!

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