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
 
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 »

Amanda Newman
13th March 2017 MTD Seminar Invitation

Making Tax Digital: Seminar Invite. Attend a free seminar at our Ely office on 11 April 2017 at 8:30am, to understand the new digitised book keeping and quarterly submission requirements of Making Tax Digital: Full Invite Details and RSVP Return Slip Blog entry by: Amanda Newman.  

Read More »

Amanda Newman
8th March 2017 Budget 2017

What’s in it for the self-employed? Starting with the good news, those with a turnover of less than £85k have been delayed from having to adopt accounting software and quarterly reporting under HMRC’s new Making  Tax digital until April 2019. However, on the downside, you will have to pay 10% class 4 national insurance rather…

Read More »

Catherine Hubbard
5th March 2017 MTD Update

Making Tax Digital: or Making Tax Difficult? Our MTD team look at a general update on MTD, Landlords, Timelines and Deadlines, Third Party Data, Bridging the Digital Gap, Unincorporated Businesses and ‘are you ready?’: Full Newsletter Blog entry by: Catherine Hubbard.

Read More »

Catherine Hubbard
24th February 2017 MTD Update

MTD: Revenue hold firm. HMRC have published their long awaited response to the making tax digital (MTD) consultation documents.  In essence the original timeline as detailed in the consultation documents remains unchanged, with the first taxpayers being affected by MTD from April 2018. Therefore for those businesses with an accounting year end of 5 April and…

Read More »

James Cater
23rd February 2017 Digital Carrot or Stick?

Making Tax Digital: Looking at cloud solutions. The Cultural Revolution, according to Wikipedia, was a socio-political movement, which took place in China from 1966 until 1976. Half a century later ….. Full article in Farmer & Growers publication (March 2017 edition)   Blog entry by: James Cater.

Read More »