Making tax digital is a major part of the government’s plans to make it easier for individuals and businesses to get their tax right and to keep on top of their affairs. HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world, modernising the tax system to make it more effective, more efficient and easier for customers to comply. Download our MTD Guide for more information.
The current published timeline for MTD is
From 1 April 2019 – VAT reporting by all VAT registered businesses over the VAT threshold (currently £85,000) However some entities have a recently announced deferred start date of 1 October.
From April 2020 at the earliest – all other taxes (income tax and corporation tax).
Making Tax Digital for business (MTDfB) begins on 1 April 2019 with MTD for VAT. VAT registered businesses with taxable turnover above the VAT threshold of £85,000 will have to keep digital records and submit their VAT returns using MTD compatible software. Businesses will no longer be able to submit VAT returns manually using the Government Gateway.
As the first to be affected it’s important for VAT registered businesses over the VAT threshold to understand how they will be impacted; how to plan for this; and even use it as an opportunity to review existing, or outdated systems for modern and potentially timesaving and efficient alternatives.
Our MTD Guide is designed to help businesses understand how they may be affected by the changes.
If you have any questions or are unsure how your business will be affected by MTD, please contact us.