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Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs - meaning the end of the annual tax return for millions. The introduction of this will require businesses and certain individuals to report activity quarterly to HMRC, in an applicable digital format.
There is widespread agreement that Making Tax Digital for Business is the right approach for the future. However a number of concerns about the pace and scale of change have been raised. As a result the roll out for Making Tax Digital for Business has been amended to ensure businesses have plenty of time to adapt to the changes.
Every individual and business can now have access to their own personalised digital tax account and these are being regularly expanded and improved, we would recommend those clients who have not registered for access to their personal digital tax account do so at their earliest convenience. HMRC aims to modernise the tax system to make it more effective, more efficient and easier for customers to comply.
Businesses will be mandated to use the Making Tax Digital for Business system in April 2019 and then only to meet their VAT obligations. This will apply to businesses with a turnover above the VAT threshold - the smallest businesses will not be required to use the system, although they can choose to do so voluntarily.
We will continue to provide updates on this issue and of course be able to advise and support our clients through this process. In the meantime if you would like to discuss your current method of recording transactions, or advice on implementing an enhanced procedures and/or implementing a computerised accounting package that will work best for you and your business, please call us on 01482 228488.