MTD – What is Making Tax Digital?

Making Tax Digital (MTD) is part of the government’s plan to make it easier for businesses to stay on top of their day-to-day accounts.

HM Revenue & Customs pride themselves on being one of the most digitally advanced tax administrations in the world.

MTD signals the end of paper accounting for millions of businesses in Britain.

Who does this effect?

From 1st April 2019, legislation will require businesses above the VAT threshold to set up a digital tax account and file their quarterly returns online with the appropriate software.

We are already talking to our software providers who are working on providing a unique piece of software for us and our clients that integrates with HMRC specifically so that our clients are ready for the digital cut over.

The preparation of the new system starts now, with businesses and accountants moving online to improve efficiency, boost profitability and make the transition with some ease. Well that’s the plan anyway!

Forth coming dates to be mindful of.

April 2018
HMRC are running a Pilot scheme Testing New Vat

1st April 2019
Quarterly Vat Returns,
As the principle of Virtual Tax UK, I Jane Cooper am already connected to the forums and talking points at HMRC gaining information and insights into the new system and how it will affect our clients.

Useful Tip
HMRC states that if your Vat return covers this period of the 1st April 2019 the first Vat return you will file under the new system will be the return falling after the 01st April 2019.

April 2020
CT Income Tax
Sole Traders, P ships between 10k and 83k