Making Tax Digital will come into force on 1 April 2019
What is Making Tax Digital (MTD)?
MTD is HMRC’s plan to digitalise the UK tax system, making it more effective, efficient and easier for tax payers. HMRC has confirmed that Making Tax Digital (MTD) will be implemented from 1 April 2019 – this will mean changes to the way individuals and businesses interact with HMRC.
Under MTD, the existing portal used to submit VAT returns will no longer exist. As 87% of businesses currently use this portal, there is a good chance this will affect you.
From 1 April 2019, under MTD, VAT returns will need to be submitted directly from MTD approved software.
Act now to avoid legal action and penalties
With less than six months until its implementation date it is crucial that you begin to prepare for MTD now.
At present, there are only around 40 HMRC MTD approved suppliers. This list can be viewed here.
Why is now a good time to switch to the cloud?
We recommend transitioning to cloud accounting before MTD comes into force.
We are taking a proactive approach to ensure that the businesses that we work with are fully prepared. Many of our clients are transitioning to the cloud before MTD comes into play, which enables business owners to access their accounting records in real time, thus allowing for more proactive business accounting and planning. To find out more about our cloud offering, click here.
We also offer a bridging software solution. This is software that can pull the data from your existing software into a format that is acceptable to HMRC, and the VAT return is sent from the bridging software rather than your accounting system.
To find out more about how we can help you and your business transition to Making Tax Digital download our guide to MTD, fill out our contact form here or call 0161 236 6936 to speak to a member of our team.