Making Tax Digital – Are you ready?


by Greystone



Posted On : 2018-07-09


What is MTD?

HMRC’s reporting initiative, originally announced in 2015, is set to modernise the UK Tax System by 2020, by enhancing the use of digital financial data.

Millions of businesses and individuals will have access to their respective Digital Tax Accounts, bringing all their taxes in one place, providing live data with options to make payments and update information.

How does this affect you?

If you are a VAT registered business, you are already compliant to a certain extent however, you will be required to keep digital records, i.e. regular bookkeeping on one of our Cloud Bookkeeping solutions.

The following reporting requirements are due to roll out from April 2019:

VAT Quarterly Reporting

From 1st April 2019, It is mandatory for all VAT registered businesses, with a turnover above the VAT Registration threshold. However, it is optional for VAT registered business with a turnover below the VAT threshold.

Corporation Tax Quarterly Reporting

From 1st April 2020, it is mandatory for all businesses with a turnover above the VAT registration threshold. However, it is optional for businesses with a turnover below the VAT registration threshold.

Income Tax Quarterly Reporting

From April 2020, it is mandatory for all businesses including self employed sole traders and Landlords, with a turnover above the VAT registration Threshold. However, it is optional for the businesses with a turnover below the VAT registration threshold.

 

We partner with Xero, Quickbooks and Sage one ensuring all our clients are ready for MTD requirements. Please book a free no-obligation consultation to discuss how we can help you.

 

Greystone Accountants, helping small businesses in Birmingham, Walsall and throughout the UK.