What is Making Tax Digital?

Making Tax Digital

Making Tax Digital (MTD) is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.

Making Tax Digital for business (MTDfb) begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns using compatible software. HMRC lists of software that will be compatible with MTD for VAT.

Components of MTD

Other components of Making Tax Digital, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest. Check this web page for regular updates on the latest developments, straight from HMRC.

Making Tax Digital (MTD) is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers. VAT-registered businesses above the threshold of £85k will have to keep digital records and submit their VAT returns using MTD-compatible software. Making Tax Digital for business (MTDfb) begins on 1 April 2019 with MTD for VAT.

Despite all the recent confusion surrounding MTD, it’s not as scary as it sounds. All you (or your accountant) need to do is record your taxable records and submit your VAT returns through MTD-compatible software – like Xero.

To find out how this will impact your business and what changes you will need to make contact us or call 020 8863 4566 and ask for Cem Soydaner.

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