Making Tax Digital – or MTD – is the UK’s biggest tax shake-up in a generation. Whether you’re a business owner or accountant. We’ll explain what it is, when it’s happening and what it will mean for you.
WHAT’S MAKING TAX DIGITAL
- Making Tax Digital is HMRC’s plan to bring UK tax into the digital age. In a nutshell, nearly every UK business will be affected.
- All business-related transactions must be recorded digitally using MTD-compliant software or apps.
- Tax returns must be submitted in a digital, MTD-compliant way.
- Records kept on apps or software not designed for MTD will no longer be compliant.
- Tax returns submitted by post or using HMRC’s own online services will be phased out.
From 6th April 2019 if you’re VAT registered with VAT-able turnover of £85,000 or more then you’ll be required to keep a digital record of your VAT transactions and submit your VAT returns using MTD-compliant software.
For those businesses affected:
- MTD-compliant software or apps will have to be used to keep a digital record of VAT transactions
- MTD-compliant software or apps will have to be used to submit VAT returns.
- HMRC’s own VAT online services (currently accessed by logging on to HMRC’s site) will no longer be used to submit VAT returns.
There are four main benefits:
- Digitalisation will improve the quality of record keeping.
- Less manual entry should mean fewer errors.
- Managing business affairs will become more efficient – especially if you adopt a cloud-based solution which can be accessed anywhere.
- You’ll spend less time gathering and inputting data.
We’re an ICAEW chartered accountancy firm and technology experts, so with us you get the best of both.
We can get you setup with Microsoft Dynamics 365 Business Central or Microsoft Dynamics NAV which in our opinion are the best applications to get you digitally compliant.
Both products offer comprehensive features for your financials and are an ideal fit for MTD dependent upon your business size.
Benefits include the ability to easily track, calculate and report all you core financials in real-time. Also allowing a secure communication between accountant and client within the software.
Microsoft are committed to making their product as streamlined and easy to use as possible integrating seamlessly with HMRC’s systems.
PKF Cooper Parry act as your financials backbone supporting everything from your chart of accounts to your IT training and support of your application-driven financials.
Talk to one of our advisors today to help get you up to speed with MTD.