Tax is going digital! Here is everything you need to know.
15/01/2019 - Whiting & Partners
A recent change in the UK tax system means that from April 2019, VAT registered businesses with a turnover of over £85,000 will be required to keep records using software approved by HMRC. It’s one of the most fundamental changes since the introduction of Self-assessment. Peter Brown, Accounts Technician with Whiting & Partners gives us the top 5 things you need to know about making tax digital (MTD).
MTD has already begun
You may have noticed you already have access to your digital account with HMRC. The consultation period has ended and MTD is scheduled to go ‘live’ in April 2019 for those businesses effected, eventually widening the scope to personal tax in April 2020.
You can view your tax in real-time
Another benefit of MTD is that you can see your business’s tax position live. This helps monitor how much tax you owe before the end of the year and assists with errors that may arise throughout the year.
You must use HMRC approved/compatible software
HMRC have a list of approved digital software providers, including cloud and bridging software programmes which can link data in excel spreadsheets into your digital account for filing to HMRC.
No more annual tax returns
The purpose of the new process is to make reporting financial information to HMRC more efficient. This means the end of the annual personal tax return as we know it. Instead, you will send information digitally to HMRC four times a year via your online account.
There’s still time to act
Many businesses are still yet to act. With just a few weeks to go there’s still time to get your business accounts onto a preferred software platform in time for the deadline.
If you want more information on this, you can go to Whiting & Partner’s breakfast seminar on Making Tax Digital on Tuesday 26 February at Ashlar House, Bury St Edmunds, and Wednesday 27 February at Huntingdon Racecourse where our MTD and software experts will be on-hand to provide you with the basics of MTD and what your business needs to do to comply.
To book a place at one of the seminars you can visit their website here or call Victoria Stokes on 01284 752313.
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