MTD-ready-advisor_Facebook.jpgMaking Tax Digital is the biggest change to UK taxation in recent years, which will affect virtually all businesses...

 

 - but we can help you with every aspect of what you'll need to do.

MTD.pngFrom April 2019, the 2.55 million VAT registered businesses with a turnover exceeding the £85,000 VAT threshold will be required to file VAT returns through Making Tax Digital compliant software and not via the current HMRC portal.

The move will require businesses or their advisers to use Making Tax Digital compliant software, such as QuickBooks, Xero or Sage.

But perhaps as important is the requirement for those affected to use digital record keeping.  So if you've been using a combination of paper and excel spreadsheets, you'll need to change how you do things.

After MTD for VAT has been implemented, MTD for income tax (for the self-employed and those with income from property) and MTD for corporation tax are expected to follow, but not before April 2020 at the earliest. HMRC is also running an MTD for individuals transformation project.

confused-2681507__340.jpgWhat does it mean?

The essential elements of MTD are:

  • Businesses and organisations (which includes those with income from property) will be required to maintain digital accounting records. Maintaining paper records will cease to meet the legal requirements in tax legislation
  • Businesses and organisations will be required to use a functional compatible software product to submit their returns to HMRC. The software will use HMRC’s API (Application Program Interfaces) platform to submit information to HMRC. The current HMRC online tax return services will be withdrawn for those within the scope of the MTD rules.  The information contained in a VAT return won't change.

Who is affected?

From April 2019, any business which is VAT registered with a turnover above the threshold (£85,000) per annum will need to keep digital records and use compliant software to file VAT returns.

Anyone else will be affected some time after April 2020.

How can Whitehill Help?

whitehill_team_s.pngHere's our promise to you:

1. We'll keep you informed via the news section of this site and client communications by email.  A few of our latest publicly-available articles are;

2. If you need our help, we'll be happy to support you.  As a Platinum partner with Intuit, we can offeer discounted rates for Quickbooks Online, and help you make the transition from paper records or spreadsheets.  We can manage the registration and submittion of MTD VAT records for you.  We can do more or less of your bookkeeping, accounts production and work to tailor our offering to exactly what you need.

Don't worry, you're not on your own.  But you may well need to act sooner rather than later.

Simply contact us and we'll talk through your needs.