Making Tax Digital

Making Tax Digital Is Coming

Are you ready for the Making Tax Digital (MTD) revolution that will affect your business from 1 April 2019?

So What’s Changing on 1 April 2019?
As a VAT registered business with a turnover in excess of the VAT threshold, currently £85,000 a year, from 1 April 2019 you will be required to keep business accounting records in an electronic format and submit future VAT returns electronically using connected software.  The option to use the Government Gateway for submitting VAT returns will cease.

 

This is just the first step towards the Treasury-driven implementation of MTD.  Subsequently, you will be required to submit quarterly returns of ‘real time’ business accounts information as well.  This will effectively be the delivery of Quarterly Accounts to HMRC in addition to final Annual Accounts, and will require up-to-date electronic accounting information to be available throughout the year.

 

Act Now, We Want to Help
To make these reporting changes as smooth and painless as possible, we want to assist you and your business to transition from existing bookkeeping and accounting processes to digital connected accounting software.  Acting now will ensure everything is in place, tried and tested all in good time.

 

Read our latest blogs and keep up with the most recent developments as well as our newsletters and events created to keep you up to date with the MTD journey.

 

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

Issue 4 – Making Tax Digital… a reminder

September 2017 – MTD Leaflet

 

   



 
Latest Blogs in Making Tax Digital
 
Victor Courdelle
7th February 2019 MTD for VAT – pilot extended to all eligible businesses

  HMRC has extended its Making Tax Digital for VAT (MTDfV) pilot scheme to all eligible businesses. For most businesses, compliance with the regulations is mandated for VAT return periods beginning on or after 1 April 2019. However, MTDfV for some ‘more complex’ businesses has been deferred until 1 October 2019. This deferral applies to:…

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Stephen Malkin
1st February 2019 MTD for VAT: Which Bridging Software?

As we approach the 1 April 2019 deadline for the introduction of MTD compliant VAT submissions, many businesses will at last be focusing on what solution they should adopt.   If their current bookkeeping system does not already have an upgrade that automatically provides this new functionality, they will be considering adopting ‘bridging software’.   Looking through…

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Peter Brown
13th January 2019 5 things you need to know about Making Tax Digital

  Making Tax Digital (MTD) is the hot topic this year. It’s one of the most fundamental changes to the UK tax system since the introduction of self-assessment. From April 2019, VAT registered businesses with a turnover of over £85,000 will be required to keep records using software approved by HMRC.  We have condensed the…

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Richard Alecock
21st December 2018 Making Tax Digital …… Only 100 days to go!

It’s time to decide how you will digitalise your records in order to meet HMRC requirements ahead of April 2019 HMRC wants the UK to be one of the most digitally advanced tax administrations in the world, improving efficiency, effectiveness and ease of compliance. Their plans signal the end of paper accounting for millions across…

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Victor Courdelle
19th November 2018 Xero Rapidly Becoming THE Small Business Platform

At Xerocon 2018, held Wednesday and Thursday last week, we heard how the number of Xero Subscribers has now reached over 1.6 Million Worldwide.   Xero’s focus on becoming THE Small Business Platform is greater than ever, with recent market research confirming how users of Xero really do save time, in some cases as much…

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Richard Alecock
9th November 2018 HMRC letters to businesses affected by MTD for VAT

HMRC have started to send out their first wave of what they are calling “encouragement letters” to businesses within the scope of MTD for VAT. The letters are being sent to businesses which are currently eligible to join the pilot.  They are not being copied to the businesses’ agents. The first wave is 20,000 letters…

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Scott Butcher
8th November 2018 Making Tax Digital for VAT public pilot opens and deferral for some businesses

HMRC has opened the Making Tax Digital for VAT (MTDfV) public pilot. However certain VAT-registered businesses (around 3.5% according to HMRC) with more complex requirements will be deferred from being subject to MTD for six months. Essentially, the public pilot is now open to sole traders and companies using standard VAT accounting. This applies whether…

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Richard Alecock
18th October 2018 HMRC defer MTD for businesses with more complex requirements

HMRC have updated  MTD for businesses with more complex requirements The exception is a small minority of VAT-registered businesses with more complex requirements. As part of planning for the VAT pilot, HMRC have made the decision to delay mandation for these customers until 1 October 2019 to ensure there is sufficient time to test the…

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Victor Courdelle
15th October 2018 If HMRC Can’t Say, Who Can? – Records Required for ‘Cash Accounting for VAT’ Under MTD

Reference to VAT Notices 700/21, 700/22 and 731 suggests that a business using Cash Accounting for VAT under Making Tax Digital will be required to:- Maintain digital accounting records at transaction level: Keep a digital VAT account using Accrual accounting; Cross reference Monies Received and Paid against individual Sales and Purchase invoices within their digital…

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Richard Alecock
11th October 2018 Making Tax Digital, VAT and newly registered businesses

All VAT registered businesses with a turnover over the current VAT registration threshold of £85,000 will be required to comply with the Making Tax Digital (MTD) record keeping and reporting requirements for VAT periods which start on and after 1st April 2019. Where a business is VAT registered but has turnover under £85,000 at April…

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