To improve efficiency and ease of compliance and to make it easier for businesses to stay on top of their day to day accounts, HMRC is introducing Making Tax Digital.
From April 2019, businesses above the VAT threshold will be required to set up a digital tax account, submit tax information every three months and file quarterly returns online.
MTD signals the end of paper accounting for millions of businesses across Britain. For this reason, you will be issued with a digital tax account, allowing specific information to flow automatically into your digital account, including some bank data and information from other government departments.
You will be required to check this data every three months and provide any additional information required by HMRC.
Key Features of MTD
- Quarterly submissions
- You will have to submit tax data every three months via online software in addition to your annual return.
- Automatic data recording
- Computer software will record money coming into and going out of your business. You will just check the data and update it to HMRC each quarter.
- Advance notice of tax liability
- Every quarter you’ll know what your tax liability is.
How We Will Help You With MTD
While we use all the major online software packages, we recommend Xero as we find it the most comprehensive, the simplest and the most user friendly of the software packages. We will:
- Set up Xero for you and train your staff in how to use it.
- Provide ongoing support and advice on all things Xero.
- Help prepare or review your quarterly returns.
- Advise you when MTD will become compulsory for your business.
- Hold your hand throughout the process, ensuring that MTD improves the transparency and efficiency of your business.