The overall objective of the Government's Making Tax Digital (MTD) planning will affect every individual ‘personal’ taxpayer and business by 2020.
Making Tax Digital will implement major changes to the way the tax system works in the UK, changing tax management and reporting so that it is:
- more effective
- more efficient
- and easier for you and HMRC to ensure tax information is correct
Many changes are already underway and since April this year businesses with a turnover above the VAT threshold of £85,000 will be required to keep their records digitally and submit VAT returns to HMRC using MTD-compatible software solutions in order to meet their obligations in filing VAT Returns. Those businesses with a turnover below the VAT threshold are not yet required to use Making Tax Digital solutions to file their VAT but may choose to do so should they wish, other areas of taxation such as Income Tax and Corporation Tax have been put on hold at present until 2020 at the earliest.
At the heart of the 'Making Tax Digital' plan is the need to get all tax records online and up to date, so they are accessible to both taxpayers and HMRC. Account submissions will be made quarterly to provide HMRC with a view at a fixed ‘moment in time’ of business income and expenses.
How does Making Tax Digital affect me and my business?
If you are already using software that is compatible with the MTD requirements to submit VAT returns online, then you really have very little to worry about, you are already MTD prepared!
If that isn’t the case then you will need to review your current system to ensure your business is compliant for any VAT Returns submitted after 1 April 2019 and going forward!
At Baker Chapman & Bussey we can work with you to help you get on top of the Making Tax Digital requirements. We know what is required to administer business data digitally and have already spent time training our team to help our clients through this change.
Baker Chapman & Bussey already partner with several of the leading accountancy software providers whose solutions are approved by the HMRC and can support you with the implementation of an appropriate upgrade to your current system.
Require more information?
If you would like more information or would like to speak to us direct then call us on 01206 715000. Or if you would prefer, ask us a question online.