Despite numerous calls from business groups for a delay, HMRC’s flagship scheme Making Tax Digital (MTD) started on Monday 1st April 2019.
It means almost every VAT registered business with a taxable turnover of above £85,000 will have to register its tax records using HMRC compliant software. Paper returns will no longer be accepted, and businesses that fail to comply will be subject to penalties.
Although 98 per cent of UK businesses already file VAT returns electronically, HMRC says that streamlining the system will make it more efficient for bosses (and the Exchequer) to keep track of their bills – and put Britain well on its way to becoming one of the most advanced tax administrations in the world.
Are there any benefits of MTD for your business?
Businesses should see MTD as an opportunity to improve their efficiencies and embrace the digital world – keeping real time information helps you to understand how your business is performing.
There are a number of other benefits to small businesses:
• Improved quality of record keeping and safer data if you opt for a cloud accounting solution.• Less errors, due to less manual entry of data.
• More efficient management of your business finances. All your data will be in one place and up-to-date.
• Less time at the end of the tax year gathering data and knowing how much tax you need to pay throughout the year will help with budgeting and cash flow.
HMRC’s Making Tax Digital (MTD) plans will ultimately create challenges for businesses, individuals and landlords alike, and Euro Accounting Ltd is ready to assist you.
We can provide guidance and support in getting you MTD compliant. We can provide accounting services, online accounting packages, outsourced bookkeeping services, tax advice and VAT services.
For more information contact our taxes experts.