Making Tax Digital
Making Tax Digital (MTD) is an initiative from HMRC to make reporting of taxes for individuals and businesses easier, to reduce the incidence of errors and to close the tax gap.
The Making Tax Digital for VAT (MTDfV) regulations came into force on 1 April 2019.
MTDfV is the first phase of HMRC’s landmark Making Tax Digital (MTD) regime, which will ultimately require taxpayers to move to a fully digital accounting system and tax submissions.
Under the new rules, businesses with a turnover above the VAT threshold (currently £85,000) are required to keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD compatible software. There are a few exceptions to the new requirements, but these are only available to a small minority of VAT Registered businesses.
All VAT Returns for periods beginning on or after 1 April 2019 need to be submitted in an MTD compatible format.
With effect from 1 April 2020 all tax registered businesses will have to comply fully with MTD requirements as set by HMRC. The quarterly returns for income and expenditure will replace the current system for submission of corporation tax returns and parts of the self-assessment returns.
What you need to do.
With the implementation date for digital VAT submissions now with us businesses need to ensure that they are using compatible software which will allow digital submission for VAT Returns and from 1 April 2020 keep all accounting records on a digital platform.
How we can help.
David Marshall Associates would be glad to help you assess your situation and to advise on what action is required. We can advise on the choice of MTD compatible software and we can either supervise or assist in the transition.
The benefit of making the transition to a digital (cloud) based accounts system is that routine bookkeeping tasks can be automated and the whole process becomes less onerous.
For further information please contact David Marshall or Xanthe Tremain who would be pleased to assist you.
Contact us for more information.
Can you claim R&D Tax relief?
At DMA, we have a track record of helping clients with all R & D tax issues. We can advise you precisely on what does/does not qualify for tax relief under R&D activities and under which R&D scheme.
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