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Making Tax Digital

What is Making Tax Digital (MTD)?

Making Tax Digital is part of the HM Revenues & Customs (HMRC) initiative for a digital system that makes it easier for individuals and businesses to manage and correctly submit their tax affairs. The main driving force behind the MTD initiative is to help reduce tax errors and close the tax gap.

The new system will require all businesses, landlords and self-employed taxpayers, with an annual turnover of £85,000, plus to register, manage, record and submit their tax information online each quarter.

Watch this quick video on what digital record keeping means as part of Making Tax Digital for VAT.

When does MTD come into effect?

From April 2019 businesses above a £85,000 threshold will be required to keep digital records and process submissions via an online cloud accounting software. A pilot for Income Tax has already been implemented however MTD will only be compulsory for Income Tax and Corporation tax from April 2020.

  

     APRIL 2019          

 

MTD will be compulsory for all VAT registered (£85,000 +) businesses             

 

     MAY 2019

 

Digital submission of first monthly VAT returns

 

     JULY 2019

 

Digital submission of first quarterly VAT returns

 

     APRIL 2020                 

 

MTD compulsory for Income Tax and Corporation Tax

 

 

 

 

 

 

 

 

 

How can Hentons help?

As Platinum Partners of Xero and QuickBooks, Gold Partners of Sage and Premium Partners of FreeAgent, all who have been working closely with HMRC to ensure their platforms are MTD compliant, we can help you to make sure you make the necessary changes to the way you do your bookkeeping and file your VAT returns. Our expert MTD team will help you to implement new processes and software’s and train you and your staff.

Find out more about our cloud accounting software here.

 

Our team of experts are on hand to help you chose the right software to meet your business needs and ensure you are MTD compliant. Contact us for more information or contact our Lead Digital Partner directly:

 

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