Making Tax Digital an initiative designed to upgrade the UK tax system for ease and efficiency. MTD will eventually cover all tax, and is being rolled out in stages. The first stage comes in to effect on 1 April 2019 and affects businesses with a turnover above £85,000 who will have to keep digital records and submit VAT returns through the HMRC gateway using commercial accounting software. If you're going to be impacted you can get everything you need here on our MTD resource hub.
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.
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 firstname.lastname@example.org.