What is Making Tax Digital?
Making Tax Digital (MTD) is a government initiative that will eventually move virtually all tax/NIC management and payment online. It mandates digital record keeping and automated filing, this will require the use of compliant software.
Previously, most businesses were to be included within the move to MTD by Apil 2019. However, in the draft finance bill (2017) this changed and the government announced that the implemenation of MTD is to be scaled-back in the short term as follows:
Digital records are expected to record business information and specific transactional details. The VAT return information must be generated from these digital records and submitted to HMRC via an API (Application Programming Interface).
We realise that some clients are using manual records, spreadsheets, legacy systems and out of date software versions so action will be required in order to meet the MTD obligations.
We are committed to supporting our clients through the transition to MTD by offering a wide range of services from bookkeeping, implementation of accounting software to advice on automating bookkeeping routines. We appreciate that MTD will create fundamental changes for some clients and we are poised to offer recommendations and advice.
For more information please contact Nick Brearley or Steve Booth on 01422 352517