Making Tax Digital – What’s the Latest?
Making Tax Digital was scaled down and delayed following the 2017 Finance Bill, but now it’s back with a vengeance.
Here’s what you need to know:
What is it?
MTD (Making Tax Digital) is the government’s plan to get us to keep better day to day business records. It will also mean that the government has more accurate and up to date data on business’ finances.
When does it start?
It comes into force from April 2019 for quarterly VAT returns, and April 2020 for businesses with income between £10k and £85k (sole traders, partnerships, limited companies).
Does it affect me?
If you run a VAT registered business yes it does affect you. You will need to set up a digital tax account as soon as possible, and file quarterly returns online.
What do I need to do now?
If you’re a client of Kinder Pocock’s – you won’t need to do anything, as we have already got you running your record-keeping online, and we have the right systems in place so that we can file online under MTD from April 2019.
What if I’m not ready?
You need to find a digital accountant straight away! It always pays to get any new system up and running smoothly before you need to, to make sure everyone is on side, and your processes are streamlined. A great digital accountant will help you get set up and steer you on your digital journey.
Where can I find out more?
Xero have a fantastic MTD Resource Centre which has all sorts of useful info. We’ve also written a blog on how much Making Tax Digital is likely to cost you here.
I hope you found the above facts useful, as always do get in touch to discuss any of the points mentioned. Please keep an eye on our blog page for more useful posts!
Thank you for reading!
Kinder Pocock are an approachable cloud-savvy firm of accountants based in Herefordshire but supporting businesses on the move.
We specialise in Security, Design and Indie Hospitality businesses.
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