Making Tax Digital (MTD) is quite literally just around the corner. By April this year, an estimated hundreds of thousands of businesses will need to be fully compliant with MTD, which is why it is important to plan ahead now.
Spearheaded by HM Revenue & Customs (HMRC), MTD is the Government’s plan to slowly digitise Britain’s tax reporting system over the coming years, in a bid to make our nation’s tax system one of the most advanced in the world.
But while many businesses and self-employed individuals will not be affected by MTD immediately, almost all VAT-registered businesses earning above the £85,000 VAT threshold need to be fully compliant by April, with a select few requiring to be compliant by October. Therefore you should seek specialist advice ASAP.
What can I do to prepare?
Ahead of MTD, you will need to ensure that all of your relevant tax and financial information has been migrated online via an MTD-friendly software package, which will enable you to communicate with HMRC when it comes to submitting tax reports.
If your business is VAT-registered, you will be expected to use this software to send quarterly digital reports to the Revenue for VAT purposes from April onwards.
HMRC plan to continue to roll out MTD for other taxes from 2020 which means that regardless of your business’ VAT status, it is wise to start planning ahead.
How can I ensure compliance?
The best way to get ready for MTD today is to start using a cloud accounting solution.
At Kirk Newsholme, we use a number of HMRC-approved online accountancy software products, which are quick and easy to set-up and use – allowing you to take control of your finances on the move.
So, get ahead of the game by signing up to our online accountancy services today, so that you and your business are prepared for the future of digital tax.
To find out how Kirk Newsholme can help, please contact Clare Thomas at firstname.lastname@example.org or by calling 0113 2044216.