Making Tax Digital
As of April 2019 all VAT registered businesses with a turnover that is over £85,000 per year are required to comply with Making Tax Digital.
Here are some answers to some questions you may have about Making Tax Digital.
What does Making Tax Digital mean?
Making Tax Digital is a key part of the government’s plans in order to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
Why is it happening?
HMRC want to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works so that it is:
- more effective
- more efficient
- easier for taxpayers to get their tax right
When is it happening?
VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns from 1 April 2019. For more information see the post on the Making Tax Digital Timetable
Who does it affect?
If you are a VAT registered business and have a turnover of over £85,000 you need to keep VAT business records digitally. You also have to submit VAT returns digitally.
How does it affect me?
It doesn’t change the information you need to send to HMRC or when you need to send it. But you do need the right software.
Where can I find help?
Right here. Because we’ve undertaken hour after hour of CPD training in relation to MTD to ensure we have the knowledge to help you.
We’ve also done extensive research into HMRC listed software so you don’t have to.
Moore Financial Management is proud to partner with 2 of the leading software suppliers that provide a solution for MTD. Also certified in the installation and operation of the Online Accounting software which means we can support you with the initial set up and on an ongoing basis. The software is both digitally compliant and specifically designed for small and medium sized business.
Are there any benefits?
Digital accounting has significant advantages over the traditional ways of bookkeeping. You can:
- Create estimates and send invoices from your phone
- Connect it to your online banking so that you have real-time overview
- Estimate your tax liability
- Avoid stress at VAT quarter end
- Ensure better Tax Planning because you always know how much VAT you owe to HMRC.
- See a clear picture of your current financial position, in real-time;
- Have your accounts 100% online, so there’s no software to install and everything is backed up automatically. Updates are free and instantly available;
- Avoid upfront accounting software costs – upgrades, maintenance, system administration costs and server failures are no longer an issue;
- Have your bank feed your data directly into your accounts on a DAILY basis;
- Take a photo on your phone of a purchase invoice and post it to the software automatically;
- See your results, who owes you money, who you owe to and your business bank balance 24/7, 365 from your phone