Making Tax Digital

LATEST (September 2017) – On 13 September the Government launched a consultation on the proposed MTD secondary and tertiary legislation. HMRC’s open consultation details can be found on their website here.

 

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

September 2017 – MTD Leaflet



 
Latest Blogs in Making Tax Digital
 
Mark Burrows
11th October 2017 Making Tax Digital – will free software be available?

  When Making Tax Digital (MTD) was first announced, HM Revenue & Customs said that free software would be available for the most straightforward small businesses.  Under MTD records of business income and expenses will be required to be kept digitally using a software product or app.   HMRC have since provided clarification on which…

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Thomas Carter
11th October 2017 Xerocon London 2017

Two fantastic days at Xerocon London on 4th and 5th October as 2000 attendees from 24 countries descended on the ExCel, the annual event for Xero Partners. Over the two days, four of our staff: Tom Carter, Dan Coleman, Steph Tinkler and Chip Moore attended the event. It was an opportunity to learn about new…

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Catherine Hubbard
5th October 2017 Simple Assessment

  HMRC have now implemented their ‘Simple Assessment’ project, where they use the information already available to them from employers, pension providers, the DWP and banks to calculate the tax for those with straightforward or ’Simple’ tax affairs, without the need for a tax return to be completed.   In theory this sounds like an…

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Victoria Scott
12th September 2017 HMRC online forum and webchat

HMRC have announced the introduction of a new online tax forum and webchat service for small businesses. HMRC are advising that the new service called the Small Business Online Forum offers advice on tax matters as well as help with: starting a business support for growing a business – including taking on employees and expanding…

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Catherine Hubbard
7th September 2017 Further move towards dealing with HMRC electronically

HMRC have for some time been keen for taxpayers to make their tax payments electronically.  They have recently updated their guidance to show that from 15 December 2017 it will no longer be possible for taxpayers to pay self-assessment tax, or in fact any other type of tax, directly at the Post Office.   This…

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Kimberly Weston
5th September 2017 QuickBooks Online Security

  A frequent concern when discussing cloud based accounting with clients is what security measures are in place to ensure their data is protected. QuickBooks Online offer password-protected data as well as a two-step Authentication. Two Step Authentication Two step authentication means that as well as requiring a username and password to access QuickBooks Online…

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