Get Set For Making Tax Digital (MTD)

Making Tax Digital [MTD] is HMRC's move to digitise tax. From 2019, UK businesses will have to start submitting VAT and tax returns online using compliant accounting software.

WHO WILL THIS AFFECT FIRST?

From April 2019, MTD will be compulsory for all VAT registered businesses and organisations with turnover above the VAT threshold of £85,000.

This includes unincorporated businesses, partnerships, companies, LLPs, trusts, non-UK businesses registered for UK VAT and charities.

MTD will affect tax submissions for all other businesses and individuals from April 2020, so now is a good time to update your tax record keeping and submission processes. Ask us how.

GET... SET... FOR... MAKING TAX DIGITAL [MTD]

From April 2019, VAT registered businesses and organisations with taxable turnover above the VAT threshold of £85,000 will be required to:

  1. Maintain their accounting records digitally in a software product such as Xero.
     
  2. Submit their VAT returns to HMRC using a functional compatible software product that can access HMRC’s API (Application Program Interfaces) platform. The relevant VAT return data should be digitally linked so that transaction can be traced from source (i.e. purchase/sales ledger) through to VAT return completion.   

✔ ALREADY MTD COMPLIANT

Businesses and organisations using accounting software such as Xero or other compatible software are already MTD compliant and do not need to take further action.

✘  NOT MTD COMPLIANT

Businesses and organisations keeping their accounting records offline, on spreadsheets, or other non MTD compliant software.

ARE YOU READY FOR MTD?

For further information or advice on MTD, please contact your usual Jeffreys Henry LLP Parter or Sudhir Rawal on 02073092225 or by email to srawal@jeffreyshenry.com.