Making Tax Digital – Nothing to worry about.
I am sure by now you will have heard of or been written to about HMRC’s digital tax initiative called Making Tax Digital or MTD.
Here at Normans we have been ahead of the game for some time now as we already keep our client’s data electronically and submit our returns through Xero software – Ta-daa!
What is Making Tax Digital:
Making Tax Digital (MTD) is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.
Making Tax Digital for business (MTD) begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns using compatible software.
Here at Normans we only use Xero software (Link - https://normansbp.co.uk/cloud-bookkeeping-solutions/ ), and this is listed by HMRC as being MTD compatible.
Other components of Making Tax Digital, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest.
Want some advice?
Contact us today if you are concerned about MTD and how it impacts your business and we can tell you how we can help.
Below are some some useful links
HMRC Video - https://www.youtube.com/watch?v=TUYe7SjYWR4
Xero Video - https://www.youtube.com/watch?v=pVPiuEqkYLw
HMRC Stakeholder Communications Pack - https://www.gov.uk/government/publications/making-tax-digital-for-business-stakeholder-communications-pack/making-tax-digital-for-business-stakeholder-communications-pack#important-facts-about-mtd