Get your business ready for 'Making Tax Digital'

You may also have heard about the UK Government's Making Tax Digital (MTD) initiative. Their aim is to make the tax system easier, more efficient and more transparent.

This means a lot of changes including the end of annual tax returns and the start of quarterly tax returns.

These changes will begin to impact UK businesses soon.

• From April 2019 – VAT registered businesses will be required to use MTD when completing VAT returns quarterly

• From April 2020 – All businesses (including Landlords) with turnover over £10,000 per year and all companies will be required to file quarterly accounts using MTD

Five returns a year will be required to be sent to HMRC for each business (four regular quarterly returns and an annual ‘finalisation’ return) after the dates above.

The Government will release more detail on MTD over the coming months.
 

We are here to guide you through this process every step of the way. We can help you: 

• Review your bookkeeping position to ensure you are able to comply with these new rules
• Understand your launch date 
• Ensure you comply with these new requirements.  

The MTD reporting system is being trialed over the coming year by HMRC, so it is possible some of the finer details will change.  It is also possible that the turnover threshold (currently proposed at £10,000 from April 2020) might rise.
 

How will I file quarterly returns?

If you use accounting software:

• Software providers are due to release more information and guidance on their products over the next year, but it is likely that electronic records will be required for MTD.
• Your software provider is likely to include a function to allow quarterly submissions.

If you use spreadsheets:

• It will be necessary for the spreadsheet to be “combined” with software to enable MTD reporting.

If you use manual records:

• You will need to start using either a software package or a spreadsheet.
• The government has agreed with software developers that free software will be available for the simplest accounting requirements.