What is “Making Tax Digital” (MTD) ?
MTD is the name given to the plan put in place by Her Majesty’s Revenue and Customs (HMRC) for all businesses and individuals to eventually have to file their information from digital accounting records.
When is this all happening?
MTD will commence in April 2019 when it becomes mandatory for VAT purposes for businesses with taxable turnover above the VAT threshold (currently £85,000) with other businesses being included from 2020 at the earliest.
This means that businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new digital system.
What does this mean for me?
This changes the way HMRC wants information from tax payers and means that you may need to move from your existing desktop or manual record keeping and onto an online accounting package.
How do I get prepared?
If you are not already using an online accounting package then the best thing you can do for your business is to start planning for a transfer of your accounting records on to one of these systems. The task is not as painful as you might think – and once it’s done there are so many benefits to using online accounting software you’ll wonder why you didn’t do it sooner!
Katie Hearns CA of MTD Scotland has worked closely with online accounting software over recent years and is a QuickBooks Online ProAdvisor and an accredited FreeAgent accountant. She is ready to help get you up and running on either of these systems, as well as any other online accounting software you may prefer to use. Get in touch today using our contact form and we will get back to you as soon as possible.