Accountants for Digital Tax
We give Making Tax Digital Advice and can make the move to digital reporting as stress-free as possible.
HMRC’s vision to digitalise the UK tax system is now well underway. The process started in April 2019 with VAT registered businesses with turnover exceeding the VAT threshold (currently £85,000) being required, from this date, to use commercial software to maintain their VAT records and send their VAT information to HMRC.
From April 2019, businesses need to make VAT returns on a quarterly basis using a ‘designated software package’. This is the first stage in the implementation of the Government’s Making Tax Digital programme, which is intended to take the filing of most taxes online in the coming years.
Many of our clients are already using computer-based accounting packages such as Xero, Sage or Quickbooks as part of our RT Clarity service. These packages will not only future-proof your business in readiness for each new Making Tax Digital requirement in the coming years, they also enable you to share financial information in real time with our team and quickly produce bills and invoices.
Making Tax Digital Advice
Keeping digital records and making quarterly updates will not be made mandatory for taxes other than VAT before April 2024 at the earliest, starting with MTD for Income Tax Self-Assessment for the self-employed and landlords with gross property of business income of £10,000 or more.
General partnerships will also be required to follow these rules from April 2025, following by other partnerships at a date that is yet to be confirmed.
This timetable differs drastically from the original system proposed by the Government and restricts the number of businesses immediately affected by the MTD regime.
Nevertheless, businesses do need to be prepared for the gradual implementation of the new digital tax regime.
Contact us today to find out how we can save your business time and money, while making the transition to Making Tax Digital for VAT as stress-free as possible.