Making Tax Digital shouldn’t be taxing!

26 Mar 2018

2018 is the year of GDPR - and we’re predicting that 2019 will follow suit with another regulation known as Making Tax Digital (MTD).

 

While this phrase Making Tax Digital may sound familiar, for those who have been blissfully unaware of the new regulation, this blog will tell you all that you need to know about MTD and why it shouldn’t be considered a taxing concept.

 

What’s the point of MTD?

 

Simply put, the new scheme intends to revolutionise the tax system for taxpayers. Sounds exciting, doesn’t it?

 

The Government is introducing this new regulation to make tax administration more efficient and simpler to use. This will make it easier for individuals to stay on top of their day-to-day accounts and bring an end to self-assessment. So, wave goodbye to paper invoices and spreadsheets!

 

Like many things in today’s digital world, this scheme is based around the trend of moving business online. It’s no surprise that HMRC has agreed to this initiative, with cloud accounting, online banking and everything in between, more and more individuals are embracing the internet when it comes to finance.

 

What deadlines do you need to be concerned with?

 

By April 2019:

•        All UK businesses with a turnover above the VAT threshold (£85,000 per year) will be required to store their records digitally and provide their VAT return information to HMRC through a compatible software.

 

By April 2020:

•        It will be mandatory for all businesses (above the VAT threshold) to report their Income and Corporation Tax online.

 

For businesses, self-employed professionals and landlords with a turnover less than the VAT registration threshold, an option to register for VAT from April 2019 will be available, and again with the Income and Corporation Tax in 2020.

 

In the next few years, the Government intends on rolling the MTD scheme out to all businesses and individuals within the UK.

 

What do you need to do?

 

While it is a big change, MTD shouldn’t be considered a taxing concept and our intention here at N S Accounts & Technology is to ensure if you are a current client of ours, that you see little change to your current service. Whilst the initiative may seem far away right now, the deadlines will creep up on you quickly and so, should be put into action now. We’ll work with you to minimise any issues and ensure you are compliant with the alterations to the tax system.

 

If you are not currently a client, and would like to find out more, or if you are worried about the Making Tax Digital scheme, get in touch with our team today. We will discuss everything you need to know about the scheme and will answer any taxing questions you might have. Contact us via phone on 029 2064 7787 or email us at nikki@nsaccounts.co.uk.

 

 

 

 

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