Do you know what Making Tax Digital is? If you don’t, no need to worry, as here at Caroline Streatfield Bookkeeping, the leading bookkeepers in Eastbourne, we’re going to give you a quick run through. If you do know about it – are you confused? Perhaps, you don’t know quite what your next steps are? In our latest blog, we give a quick overview of what MTD is, the key points, those that should have already started filing out their returns, the software you can use and what you should do next to ensure that you and your business are MTD compliant.
What Is Making Tax Digital?
It has been years in the making and has been designed by the government for individuals and businesses to make it easier to get their tax right and to keep on top of things. Tax administration is transforming, making it more effective, more efficient and easier for taxpayers. We live in a digital age and hence MTD is a digital tax reporting system whereby business accounts will have to be submitted in this way seeing an end of paper records. HMRC is going ‘paperless’, which is not a bad thing.
Key Points of the Digital Tax System
- No more bureaucratic form-filling
- No repetition of information
- A faster and more efficient service
- Taxpayers have access to their digital accounts
- Information automatically uploaded
Deadline Day Has Arrived
MTD has already come into effect for some businesses and since 1 April 2019, companies with a taxable turnover of £85,000, have been required to keep digital VAT records using software such as QuickBooks, Xero or FreeAgent. June 7th saw the first submission deadline for monthly filers whilst August 7th was the first deadline for quarterly (April to June stagger) filers. Those on the May to July stagger have a filing deadline of 7th September. One million businesses are now in the service with 900,000 VAT submissions having been filed.
Conclusion
All businesses, which are affected by MTD must sign themselves up or get an agent to sign upon their behalf. HMRC are running 4 webinars throughout September, which you can sign up for. Your choice of software is up to you as HMRC does not recommend or endorse any products although a software choices selection tool is available.
What To Do Next
Caroline Streatfield Bookkeeping is a registered HMRC agent and can help ensure your business is MTD compliant. We will be able to help and to advise you on which software will be the most suitable for your business and provide training if required. Alternatively we offer a complete bookkeeping and VAT service. There really is no reason to struggle any longer. For more information and a without obligation chat, please call Caroline on 07982 682746 or email info@bookkeepereastbourne.co.uk