Making Tax DigitalMEET OUR Making Tax Digital TEAM
From April 2019, HMRC is embarking on an ambitious plan of Making Tax Digital (MTD). The aim is for everybody to have a digital tax account that is periodically updated so that you, the taxpayer, can keep track of your affairs.
Will MTD affect me?
Starting in April 2019, all VAT registered businesses with a turnover in excess of £85,000 will be obligated to comply with MTD, and will therefore be required to do the following:
- Keep records in a digital format as required by the new regulations
- Preserve digital records in a digital format as required by the new regulations
- Create a VAT return from the digital records in MTD compatible software and provide HMRC with this information digitally
- Provide HMRC with VAT data on a voluntary basis
- Receive information from HMRC via the API platform in relation to your business’s compliance with obligations under the new regulations
How should I prepare for MTD?
For businesses who will be affected by the April 2019 deadline, put simply, this means that if you are not already maintaining your records digitally through a cloud accounting solution that will be MTD ready, you will need to do so by April 2019 to avoid the penalties that will apply to all businesses if their VAT submissions are not made in the appropriate way. However, these businesses will not have to report information to HMRC quarterly in regards other taxes until 2020 at the earliest.
Smaller businesses, self-employed and landlords will not be expected to report under MTD until April 2020 at the earliest. For businesses whose turnover exceeds £10 million, and all companies, MTD is deferred until at least April 2020. We will be contacting all our clients to ensure that they are MTD ready, the deadlines are not that far away.
Anyone subject to MTD from April 2019 should start preparing now, it is not that far away. For all other businesses, you should start to think about what you need to do to be MTD ready.
CBW MTD workshops
We will be running MTD workshops throughout the year looking at MTD and how it will affect your business. We will be addressing the likely challenges – especially in making your business MTD ready – but also the opportunities that it presents through better real time information and helping you plan for the way ahead. Please click here to read more about our workshops and to register your place.
To contact a member of the MTD team please email email@example.com or call 020 7309 3800.