Making Tax Digital
The accounting industry and government are humming with talk about MTD!
BUT WHAT IS MAKING TAX DIGITAL?
The idea is to evolve the current, heavily paper dependent, tax system into a streamlined modern online tax system.
The uk is not the first country to embrace the digital age, countries such as australia, denmark and the united states, already require businesses to use cloud accounting software to report their taxes.
BUT WHAT EXACTLY DOES IT MEAN FOR YOU...?
The idea is to evolve the current, heavily paper dependent, tax system into a streamlined modern online tax system.
Individuals can log into their personal tax account to view their national insurance records, state pension status and much more. Every business, whether sole trader, partnership or limited company, has a business tax account to handle PAYE, VAT, and other taxes.
These accounts are intended to be secure ways for HMRC to communicate with taxpaying individuals and businesses, helping crack down on phishing emails and scams.
The Personal Tax Account
Every taxpayer and business in the UK have been provided with a digital tax account.
Feeding in Data
The digital tax accounts will be capable of having data fed to them by software products designed to communicate with HMRCs systems.
Payroll software, because of using RTI (real time information), currently feeds employment data into a personal tax account, providing details of your complete payroll history.
VAT-registered businesses with a taxable turnover above the VAT threshold (currently £85,000) are required to keep digital VAT business records and send VAT returns using Making Tax Digital-compatible software from 1 April 2019.
Income Tax, Corporation Tax are scheduled to follow suit in the near future.
HMRC have advised that spreadsheets will no longer be an acceptable format to keep records, resulting in additional costs for businesses currently without some form of cloud accounting software.
The road to MTD is constantly changing and evolving so we are constantly evaluating the software market and are even developing our own software to support these changes.
As certified ProAdvisor's for Intuit Quickbooks, we also provide advice and training and discounts in the worlds leading accounting software.
Our Goal
We are tackling the challenges impacting businesses across the UK by providing advice and training to help prepare them for MTD.
