Making tax digital

From April 2019, HMRC is launching the “Making Tax Digital” (MTD) initiative, an ambitious plan to turn the HMRC into one of the most digitally advanced tax administrations in the world.

Under the new system every UK VAT-registered business will be required to submit their VAT returns digitally to HMRC, without any manual intervention.

Making tax digital by 2020

By 2020 most businesses, self-employed people, and landlords will be required to keep track of their tax digitally, using software or apps to keep records of their income and expenditure.

You can’t escape it, and if you get it wrong there are some pretty significant penalties that you could incur.

The good news is that you will have the whole of the 2018/9 financial year to manage the change-over, but it is going to be a busy time. We estimate millions businesses will need to make the change to digital accounting.

Making Tax Digital is about bringing the tax system into the digital age, saving businesses time, and in the long run – money.

Contact us for more information about MTD