HMRC are pushing ahead with their plans to digitalise the tax system. You will not be able to escape the consequences.
From April 2019, VAT registered businesses with a taxable turnover above £85,000 will have to have Making Tax Digital (MTD) functionally compatible software to make MTD submissions to HMRC. Other businesses will follow with very limited exemptions available.
If you do not know if your software is MTD compliant then don’t wait until it’s too late, check now and update.
What does it mean from April 2019 – MTD for VAT commences:
October 2019 – MTD for VAT expanded to include ‘deferred’ businesses:
What does it mean from April 2020 – MTD for VAT expanded, MTD for income tax/corporation tax introduced:
HMRC plan to revolutionise the tax system with your digital tax account showing your liabilities in a single place.
This is potentially accompanied by ‘Voluntary Pay As You Go’ for income taxes which was discussed at the HMRC consultation stage.
The adequate submission of income and expenditure to HMRC becomes important as a result of these changes. It is likely that there will be a surge of businesses attempting to review their accounting systems. This is with regards to income and expenditure to HMRC. Furthermore, this may lead to an increased uptake of cloud accounting packages.
To discover the benefits cloud accounting packages have, visit our cloud accounting page. Alternatively, speak to one of our partners or a member of the Managed Services team. In conclusion, see how our team can help you move away from desktop accounting systems.
Here at Clive Owen we have been talking to our clients about HMRC’s plans to revolutionise the tax system with the Digital Tax Account and Making Tax Digital for Business (MTDfB). We believe these plans will have a huge impact on many. However, we can be on hand to assist you. The biggest impact is if your systems are inadequate to keep records up to date and if you don’t keep records in a digital format. Therefore, now is the time to review those systems and see how they can be updated to your advantage as well as to meet the needs of MTD.
CALL US 01325 349700
Lines open 8.30am-5.00pm Mon-Fri