Making Tax Digital

Making tax digital (MTD) is a new tax administration system that HMRC are introducing, with the stated aim  “to make it easier for individuals and businesses to get their tax right and keep on top of their affairs“.  Most commentators, however, see it as more red tape, perhaps with the possible medium term consequence of bringing forward tax payment dates.

MTD will apply to businesses and landlords, who will now be required  to:

  1. Keep their book keeping records digitally (ie, spreadsheet, on premise book-keeping software or cloud hosted book-keeping software),
  2. Make quarterly, as well as annual, electronic submissions (summarising total income and total expenses) to HMRC.

MTD will have a phased introduction:

  • April 2018: Landlords and unincorporated businesses with annual turnover over the VAT threshold (currently £83,000 pa, rising to £85,000 pa wef 1-Apr-17),
  • April 2019: Landlords and unincorporated businesses with annual turnover between £10,000 pa and the VAT threshold,
  • April 2020: Companies.

This new submission process will be similar to the current VAT return completion and e-submission process, so those who already have computerised book keeping systems and who are already VAT registered will see little  change. For those who are not, you will need to put in place a new book-keeping system. Speak to us for more detail on MTD, what solutions might work for you or even how you may outsource all or part of the process.



 
Latest Blogs in Making Tax Digital
 
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…

Read More »

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…

Read More »

Daniel Coleman
19th May 2017 Making Tax Digital – The Cloud Based Accountancy Software

As has been widely publicised a sole trader, partnership or landlord with a turnover of £85,000 or more, will need to comply with Making Tax Digital, potentially from as early as April 2018. This includes a requirement to operate an electronic bookkeeping system. Xero and QuickBooks are leading companies offering a wide range of support…

Read More »

Andrew Band
18th May 2017 Making Tax Digital Seminar – Places still available

We still have places available for our free MTD seminar on 25 May at our March office at 8.30am. If you are a sole trader, partnership or landlord with turnover in excess of £10K, you will need to comply with MTD in the near future. Our seminar will cover the impending MTD requirements and will…

Read More »

Andrew Band
10th May 2017 Making Tax Digital – Free Seminar

Are you a sole trader, partnership or landlord with turnover in excess of £10,000?  If so, you will need to comply with Making Tax Digital, potentially from as early as April 2018. Our March office is holding a free seminar on Thursday 25 May 2017 at 8.30am to cover the new digitalised record keeping and…

Read More »

Catherine Hubbard
26th April 2017 Has MTD been delayed further..?

All the clauses relating to Making Tax Digital (MTD) have been dropped from the Finance Bill, so many people have been asking if this means MTD will no longer go ahead?  We think that this is highly unlikely. The Finance Bill has been reduced from 762 pages to an expected 140 pages in order that…

Read More »