MAKING TAX DIGITAL
What is MTD
Making Tax Digital is pretty much what the name suggests. Over the course of the next three or four years (HMRC change the date regularly) small businesses, self-employed professionals and landlords will be forced to keep electronic records of their books of account using software that has been approved by HMRC. Businesses will have to file their tax information digitally on a quarterly basis with a final submission for their year end accounts.
The implementation of MTD will affect millions of tax payers and therefore, it is imperative to seek expert advice to understand what changes are happening and when.
Who will this affect – MTD for Businesses?
The first taxpayers to be affected will be all VAT registered businesses with a turnover in excess of the VAT registration threshold (currently £85,000) who will be required to keep their records digitally and file their VAT returns through commercial approved software or via bridging software. For those below the threshold, in the short term this will be optional. It is quite likely that those below the registration threshold will be drawn into MTD in the longer term. These changes means that you may well need to move from your existing method of maintaining business records on to an online accounting package.
Who will this affect – MTD for Individuals?
HMRC are in the process of creating for every taxpayer a personal tax account. Individuals will be able to access their tax information, update their records and manage their tax affairs in one place. Eventually, the aim is for the personal tax account to replace the self-assessment tax return. Currently HMRC are working on this and will be implemented in the next two or three years.
Martin Tiano & Co. are proficient in the use of the software of various major cloud software companies.
Use of these packages gives the user the advantage of:
- You can see your finances any time from any place in the world;
- We can also review your records should you require our assistance with anything;
- Run your business from anywhere in the world;
- Paperless record keeping;
- No expensive upfront software costs with monthly billing;
- Software automatic updates at no extra cost.