Making Tax Digital (MTD) is an HMRC initiative designed to make it simpler for individuals and businesses to get their tax right and stay on top of their affairs.
Following years of discussion, consultation and the passing of several deadlines, MTD will finally come into effect on 1st April 2019 when all VAT-registered companies above the threshold of £85k will be required to keep digital records and submit their returns using a compatible software product.
Making Tax Digital is a vision for the UK to become the most digitally advanced tax administration in the world. Small businesses will be forced to abandon ‘shoebox accounting’ and embrace one of several HMRC MTD approved software packages in order to keep digital records and file tax information electronically, on a quarterly basis.
This initiative will be rolled out in several phases but please note, for now, the April 2019 deadline only applies to VAT returns. Other elements of Making Tax Digital, such as income tax and corporation tax, remain on hold until April 2020 at the earliest.
For more information on how MTD will affect your business or to discuss a suitable electronic accounts package, please contact Goldblatts today.