Making Tax Digital (MTD) is a UK Government initiative to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. The Government have set out a vision for the ‘end of the tax return‘ and a ‘transformed tax system’ by 2020.
From 1 April 2019, all VAT-registered businesses (taxable turnover above £85,000) will need to keep their VAT records digitally and file their returns using MTD compatible software.
HM Revenue and Customs (HMRC) claims the initiative will make the UK’s tax administrative more effective, efficient and easier for taxpayers to submit correct returns. With this in mind, HMRC are implementing the initiative and are working with accounting software developers to ensure that taxpayers are able to make the switch to digital tax. The outlined changes apply to a wide range of taxpayers, including most businesses, micro-businesses, self-employed people and landlords, as well as individual taxpayers.
So the question is; Are you ready? Is your business prepared?
Smith Craven have appointed an expert designated to this cause. Her role is to work closely with businesses, individuals and software providers to ensure the transition process runs as smoothly as possible. With knowledge and experience of leading accounting software packages and having established relationships with the likes of SAGE, Quickbooks, Xero and Freeagent, the firm are confident that they can ably assist any business or individual through the MTD transition process.