Making Tax Digital
What is Making Tax Digital (MTD)?
Making Tax Digital is an attempt made by the HMRC to do exactly what the name suggests. It is an initiative that will revolutionise the UK tax system and ultimately bring an end to self-assessment.
By 2020, MTD will mean that businesses and individual taxpayers can access their own tax affairs online via digital tax records and have to file their tax information digitally on a quarterly basis. April 2019 is when the next major phase of the programme comes in to play for VAT which requires digital VAT record keeping and VAT returns to be submitted electronically.
Who will Making Tax Digital affect?
From April, 2019 above VAT threshold (£85,000) businesses should be registered for MTD and will need to keep their records digitally for VAT purposes.
From April 2020 smaller businesses will be required to keep digital records. This changes the way HMRC wants information from tax payer and means that you may need to move from your existing desktop or manual record keeping and onto an online accounting package. The good news is that Godfrey Laws are certified in the installation and operation of Online Accounting software which is digitally compliant and specifically designed for small and medium sized business.
What Making Tax Digital Digital software is available?
There are many Making Tax Digital Software’s available out there available for all types of businesses – but they usually come at a cost.
We have teamed up with various major Cloud software companies to provide our clients with the best possible fully compliant accounts package. Although we have a wealth of experience in most software’s, we personally recommend Xero or QuickBooks.
We are certified users of QuickBooks, Xero and FreeAgent and can offer subscription and professional training at a discounted price.
How to register for Making Tax Digital
You can register for Making Tax Digital through the gov.uk website. You will need to register at least 72 hours before your return is due if you do not pay by direct debit.
If you do pay by Direct Debit, sign up at least 7 working days before or 5 working days after your return is due. Make sure your last Direct Debit has come out of your bank account before signing up.
When you register you will need the following:
- compatible software to submit your VAT Return
- a Government Gateway user ID and password
Further information will be needed if you are signing up as:
- a limited company
- a sole trader
- an agent for a client’s business
This complicated process can be made stress free by allowing Godfrey Laws to register for you. For a small fee we can take care of the whole process and ensure that you are fully compliant for Making Tax Digital.
The important bit – how much will it all cost?
We don’t believe in set packages because we don’t want to sell you something that you won’t use, therefore, we tailor make all of our client packages based on the features of which we think will be useful to you.
With subscriptions from as little as £10.00 +VAT per month, we can help you comply with Digital Tax and take your business to a whole new level.
Get in Contact with us today…
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