WHAT IS MAKING TAX DIGITAL?
Making Tax Digital (MTD) is a fundamental change to the way the tax system works. MTD will transform tax administration so that it is more effective, efficient and easier for tax payers to get their tax right. It will affect how businesses and individuals maintain their accounting and tax records.
Businesses, self-employed individuals and landlords will have to prepare and submit quarterly updates to HMRC using the digital service from the appropriate dates. Those with a turnover below £10,000 will be exempt from quarterly reporting under the current proposals.
WHAT CAN YOU DO TO PREPARE?
You are required to maintain your records in an MTD compatible digital format.
It is imperative that your data is kept up to date to ensure that you are able to meet the quarterly reporting requirements.
If you do not currently use a cloud based accounting package, it will still be possible to keep your records using an alternative software such as excel.
HOW CAN WE HELP YOU?
At TLC Chartered Accountants we are preparing for MTD to make your transition as smooth as possible.
We can provide advice on all the options for a business to ensure you are also prepared for MTD. This includes providing template spreadsheets for recording income and expenditure, to recommending software packages best suited to the businesses specific needs.