Making Tax Digital
Making Tax Digital (MTD) is the Government’s initiative to move the UK to a fully digital tax system and represents the biggest change to the tax system in a generation.
Under MTD, tax payers will need to keep digital records and use MTD compliant software to electronically file tax information.
Making Tax Digital for VAT is the first phase of the MTD project and is already in place having been introduced for VAT registered businesses with turnover above the VAT registration limit in April 2019 and being extended to all VAT registered businesses in April 2022. All VAT registered businesses therefore now need to be keeping digital records and filing their VAT return figures using MTD.
The government’s intention is to implement the next phase of the MTD project in April 2024 by introducing MTD for income tax for self-employed businesses and landlords with a combined business and rental income above £10,000.
Under Making Tax Digital for Income Tax, each transaction will need to be accompanied by a digital record, and income and expenditure totals will need to be electronically reported on a quarterly basis.
If you are affected by MTD you will need to decide how to implement MTD compliant software to record and file transactions. This can be full digital bookkeeping systems such as Quickbooks, Xero or Sage etc. or spreadsheet based bridging software. Alternatively, you can ask us to deal with your bookkeeping for you.
We’re here to help you assess your bookkeeping and software options and to help you choose the best approach for you.
Get in touch with one of our specialist advisers to see how we can help your business.
The specialist sectors we can advise you on include,
but are not limited to the following:
- Charities and Not for Profit
- Company accounts
- IT Contractors
- Manufacturing and Technology
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- Professional Practices
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- SME Market
- Timeshare Industry
- Tourism and Leisure
Whoever you are, wherever you are, whatever you want to achieve. With more offices in the South West than any other firm, we’re always on hand to offer face-to-face advice, opening doorways to a whole world of specialisms and services which are available to all of our clients whenever they need them.
To find your nearest office or get in touch with one of our specialist advisers, please go to our contact us page.
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