Making tax digital (MTD) is a complete change in the way businesses and individuals currently report their affairs to HMRC.
All individuals and businesses will have a Digital Tax Account (DTA) which acts as a digital central repository of all information regarding their income, expenses, tax claims and tax affairs.
Making Tax Digital (MTD) will eventually affect all businesses as they move to some form of digital accounting. How your business’ digital accounting system develops will depend on many factors and will vary significantly from business to business.
First affected are all VAT registered businesses for their VAT obligations from 1st April 2019 where their turnover is in excess of the VAT threshold (currently £85,000).
Whilst MTD may prove challenging for those businesses with limited technical knowledge, for others it may only require a few adjustments to their existing systems. It is likely that the vast majority of businesses will fall between these two extremes.
In order to comply with Making Tax Digital, you will need to assess what technology will best support your business. Points to consider are;
These changes will have a huge impact on our clients but rest assured that we are on hand to assist you in dealing with your MTD obligations. Please get in touch to discuss how best we can help you.