Making Tax Digital

Making Tax Digital (MTD) is HMRC’s undertaking to bring the UK’s taxation system into the digital age.  This has already started with the implementation of the Personal Tax Account and real time changes to PAYE tax codes for those in employment.

 

Essentially the next step on the MTD journey requires businesses and landlords to keep their record in an electronic format and to make quarterly returns of real time accounts information.

 

It has recently been confirmed that the ambitious timescale originally set out has been delayed.  We believe that this is a positive move as there was the danger that the changes being rushed through could easily end in disaster.  The businesses first being mandatorily brought in to the new regime, from April 2019, are sensibly those that are already used to making quarterly reports to HMRC, namely those businesses which are registered for VAT.  However these businesses may not as yet be keeping their records in an electronic format.

 

All other businesses have a revised starting date from April 2020 which gives them time to find and test the correct solution for them so that the new requirements can be met.

 

We believe that the best way forward for many of our clients is to adopt a cloud accounting system, the benefits of which extend far beyond meeting the needs of the new taxation system.  Speak to us for more details.

 

Our latest Making Tax Digital Newsletters can be found below –

 

Issue 1 – Making Tax Digital… are you prepared?

Issue 2 – MTD – Making Tax Digital or Making Tax Difficult?

Issue 3 – Making Tax Digital … on hold for new Parliament



 
Latest Blogs in Making Tax Digital
 
Catherine Hubbard
9th August 2017 New timetable for Making Tax Digital

  The government has announced a revised timetable for the introduction of Making Tax Digital for Business (MTDfB). MTDfB introduces extensive changes to how taxpayers record and report income to HMRC. Unincorporated businesses, including landlords, were expected to be the first to see significant changes in the recording and submission of business transactions but the…

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Catherine Hubbard
20th July 2017 Are you VAT registered? – latest MTD announcement

  The recent announcement that HMRC have delayed the implementation of Making Tax Digital (MTD) for income tax until at least April 2020 has been met with relief by many taxpayers and accountants. It has however drawn attention to the fact that one particular group’s MTD journey has remained firmly fixed at April 2019. Those…

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Mark Burrows
13th July 2017 BREAKING: Changes to Making Tax Digital rollout timetable announced by Government

The Government has now set out a revised timetable for implementation of the Making Tax Digital (MTD) project.   Three million of the smallest businesses and landlords will be able to move to the new digital system for keeping tax records at a pace that is right for them, Ministers announced today as they set…

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Richard Alecock
30th June 2017 Setting up your ‘Personal Tax Account’

As part of the move from Self-Assessment to Making Tax Digital (MTD), HMRC are encouraging taxpayers to set up their ‘Personal Tax Account’. Once MTD is underway, the Personal Tax Account will be populated with taxable income from various sources, including employment/pension income, bank and building society interest, and dividends from quoted companies. The account…

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Amanda Newman
1st June 2017 Making Tax Digital –Standard Chart of Accounts

For some clients making tax digital is now start to loom with them needing to commence quarterly returns in less than twelve months. With this in mind, they may be looking to set up new software programmes in preparation. But where do you start with the headings to use in your accounts? HMRC have stated…

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Daniel Coleman
30th May 2017 Cloud based Accountancy – Useful Apps to Make Your Life Easier – GoCardless

  This blog focuses on collecting payments for your business. There are many different payment apps available to use in parallel with either Xero or QuickBooks. The application under review is an app called GoCardless.   GoCardless is made by a company called Directli it allows you to take control of your payments, ensuring your…

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