What is Making Tax Digital?
Making Tax Digital (MTD) is a HMRC initiative announced in the 2015 Budget that aims to simplify and modernise the tax system for both individuals and businesses. The Making Tax Digital roadmap sets out an ambitious vision on how the tax system will be transformed for the digital age. All accounting records must be able to link into HMRC’s system. This will only be achieved by using software which has been approved by HMRC and is compatible with their systems.
When will Making Tax Digital be implemented?
The roll out of MTD is to commence from April 2019 for all VAT registered businesses who will need to keep digital records. All other businesses will have to start quarterly filing from April 2020.
Who would Making Tax Digital apply to?
Making Tax Digital will eventually apply to sole traders, partnerships and limited companies.
Benefits of Making Tax Digital:
Accurate Tax Information – replacing paper-based bookkeeping with digital tax accounts will let you check the information HMRC holds about you is 100% correct
Reduced Errors – Making Tax Digital’s new reporting function will allow HMRC to look at your tax information almost immediately, reducing human error from data input
Easier to understand – HMRC anticipates taxpayers will better understand how much tax is owed within the digital tax account.
HMRC will not be offering software to help quarterly reporting, so we have already partnered with market leading software providers to help make managing your accounting records easy, wherever you are.
We are assisting our clients with the implementation of digital systems. Digital transformation is at the core of our agenda and goals. We recognise that for clients, initiating the process of digital transformation is constrained by a lack of knowledge or capability to execute. Our experience allows us to offer a comprehensive package delivering successful digital transformation for clients.
If you would like us to help you through these changes then contact us online here to arrange a free initial consultation.Cost cutting initiatives
At SS business consultancy practice our aim is to spot solutions for sustained improvement in efficiencies and performance. If you'd wish to perceive however SS business practice will assist you get a lot of out of your business then please not hesitate to contact u tax services
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