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.
Presently, information is submitted once per annum in your annual Tax Return. However, MTD requires quarterly reporting of income and expenses and then a further annual declaration making a minimum of five submissions to HMRC each year as opposed to the current requirement of one annual submission.
First affected are all VAT registered businesses for their VAT obligations from April 2019 where their turnover is in excess of the VAT threshold (currently £85,000).
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.