Making Tax Digital

The way that your business communicates with, and pays its taxes to, HMRC is being transformed by the Government.  The changes take effect from 1 April 2019 for VAT with Income and Corporation Tax to follow in 2020

Whilst the Government have clearly designed these changes for their own benefit it is also clear that there are significant benefits to be gained by businesses too.  Let us guide you through the process to becoming MTD compliant

Why

The Government is modernising the tax system for the 21st century to make it easier for taxpayers to be able to comply and to reduce the scope for errors whilst increasing the tax revenue received.

What

VAT rules change first and will be followed by Income and Corporation Tax

Who

Businesses that are VAT registered and have a taxable turnover above the £85,000 threshold must comply with the MTD rules

When

From the first VAT return period commencing on or after 1 April 2019

How

Affected businesses will need to use MTD compliant software to record transactions and to submit returns to HMRC.  They will no longer be able to use the HMRC website to submit VAT returns

Next

Income tax and Corporation tax will follow a similar path from 2020, although an exact date has not yet been confirmed

"Having worked alongside Ian for several years I have come to respect and admire his attention to detail, his ability to find innovative solutions and his pragmatic practical approach. Ian is a deliverer, seizing a challenge, driven by a desire to create simple and efficient environments enabling others to succeed. I would have Ian on my “dream team” any day of the week."

Caroline Killeavy, Chief Executive YMCA, Lincolnshire