Do you want to learn more about the Making Tax Digital (MTD) scheme introduced by HMRC? It was already possible to submit your tax return online. The strategy introduced by HMRC has made the whole process digital; for VAT from April 2019 then income and corporation tax from April 2020.
Most taxpayers struggle with the whole process of tax submission. This digital project is being introduced to ensure errors and mistakes are minimized. The team from The Financior Accountancy Services will take you through how Making Tax Digital will affect you and detail all there is to know!
Communicate with HMRC, Store Tax Information and Submit your Tax Return Online with Making Tax Digital
What is Making Tax Digital?
Making Tax Digital is HMRC’s mission to bring the UK tax system into the digital world.
Making Tax Digital is a change to the British tax system. It is affecting how businesses, individuals, and other organizations keep their accounting records. It also changes the way that taxpayers communicate and carry out transactions with HMRC.
Why is it being introduced?
There are a number of reasons that HMRC has introduced this scheme. It is a better way of keeping a record of how much tax you owe or how much tax is owed to you as a rebate. HMRC also want it to:
- Help to replace paper-based bookkeeping practices among businesses and individuals. This is not only beneficial for the environment and the quest to make businesses more conscious of their paper consumption, but it will also enable you to make sure that the information HMRC has on file about your business is completely correct.
- Reduce the chance of errors due to the immediate nature of the MTD software.
- Create an easier way of understanding how much tax is owed.
- Improve communication between HMRC and the business/individual because of webchat and secure messaging.
Who must use the Making Tax Digital system?
- Making Tax Digital has been compulsory for VAT from April 2019 and for income and corporation tax from April 2020.
- It is required for businesses with a taxable turnover above the VAT threshold to maintain their records digitally, using MTD compatible software to submit their VAT returns. For businesses below the VAT threshold MTD is available on a voluntary basis.
- The information that needs to be submitted remains the same.
How can The Financior Accountancy Services help you?
The help provided by our experts from The Financior Accountancy Services will, of course, depend on the existing VAT submission practices in place at your business. MTD will affect most of our clients and therefore, we are more than prepared when it comes to providing advice. Whether it’s necessary MTD software guidance and support to the digital submission of tax.