Making Tax Digital – Everything you Need to Know

Making Tax Digital – Everything you Need to Know

The law is changing - be ready!

Making Tax Digital (MTD) is part of the government’s plan to improve how individuals and businesses keep track of their tax.

What does MTD mean for you?

The first stage towards MTD comes into effect from 1 April 2019. At this stage, all VAT registered businesses (with a taxable turnover above the VAT threshold) will need to: 

•  Digitally store and update records daily (with each day’s takings separated) 
•  Submit VAT returns using software

How does it benefit you?

It helps you keep track of your business performance and reduce potential errors, making it more likely you pay the right amount of tax.

What you need to do now

  • Keep updated – the next MTD stages have not been released yet, so keep up-to-date as changes happen here.
  • Store records and submit VAT returns online – recording data daily using an Excel spreadsheet and MTD verified software.
  • What if I am not VAT registered? – all businesses should begin to make changes to becoming digital in the future.
  • Don’t panic, we can help – talk to our specialist team about what MTD means for your business and discuss our software packages to help you go digital.
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Image credits: HMRC; Quickbooks; Sage One

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