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Making Tax Digital

Jul 03

Making Tax Digital (MTD) is HMRC’s move to digitise tax - Here's all you need to know by David Whitcroft, Business Development Director. MTD means that as of 01 April 2019, HMRC require you to submit VAT returns using accounting software, and you’ll no longer be able to submit manually through the HMRC gateway. MTD will eventually cover all tax, and is being rolled out in stages. The first stage affects those above the VAT threshold of £85,000.

What does this mean for you?

Digitising tax is a good thing. You’ll no longer have to provide the same details twice and you’ll get a real-time view of your tax, so you’re not taken by surprise when bills come in – making everything simpler by having everything in the one place.

What can you do to get your business ready for MTD?

If you are VAT registered then you will need to move to digital record keeping (i.e. use software to record all your VAT invoices and receipts). If you are not VAT registered then digital record keeping is optional. However, these business owners can gain updated income tax estimates whenever they want, which will help with cash flow forecasting.

If you are VAT registered and do not yet use software to record your VAT information you need to start planning for MTD. 

Sage are committed to helping you meet your compliance requirements and have been working closely with HMRC to prepare for the introduction of Making Tax Digital.

If you’re currently submitting through Sage software, compliance could be as simple as upgrading to the latest version. If you don’t process VAT through Sage software, they've made it easy to work with us to provide the support you need for your business.

As a Sage Business Partner, we are here to support you and help you understand what MTD means for your business, whether you're upgrading to the latest version or implementing a new software solution. If you have any questions about MTD or would like to have a chat about the options available for you then give the team a call on 0843 453 0103 or email us at sage@pinnacle-online.com.

 

 

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Sage Strategic Partner

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