How does Making Tax Digital affect you?
If you are not already required to have MTD compliant records, you will be in the future. The sooner you start to create and store your tax records digitally, the easier it will be to start submitting those records to HMRC in a digital format. We have already moved most of our clients to one of our recommended MTD compliant cloud-based software packages.
Making tax digital (MTD) is a UK government initiative that set out to transform the tax system. There are many components of MTD including VAT, income tax, corporation tax and has elements applicable to landlords. HMRC has a phased approach to implementing MTD from 2019 with all VAT-registered businesses needing to comply from April 2022.
Are you ready?
We have helped multiple business transition in the UK from paper-based to digital tax filing and can share how to be most successful in the changes.
Over a month after some organisations began their first making tax digital (MTD) compliant VAT return period, HMRC made a series of changes to its guidance on this reform. While there are a number of welcome changes, affected organisations should take note to ensure that their implementation takes account of them. The changes clarify the requirement to comply with certain digital link requirements immediately and provide more detail on the exemptions some VAT registered taxpayers may take advantage of and on the digital records requirements generally.