MTD, or more widely known as Making Tax Digital, is an initiative designed and spearheaded by HMRC. It aims to ensure that that tax system of the United Kingdom is not only efficient but is also straightforward for taxpayers like you.
On the 1st of April 2019, Making Tax Digital for business together with the MTD for VAT would begin. From that day forward, every VAT-registered business that has turnover above the threshold of £85,000 would be required to keep digital records. The business would also be required to submit their VAT returns with the help of compatible software. You can find the most compatible software on the UK government’s website.
As of the moment, the Making Tax Digital’s other components, such as corporate tax and income tax, are on hold until April 2020. However, this is still a tentative date. You can check the resource of the HMRC for latest updates regarding the current MTD developments.
Why Is HMRC Introducing MTD?
HMRC wants to introduce MTD with the intention of helping taxpayers keep track of their taxes better. This means that through the help of MTD, throughout the financial year, you can easily track how much tax you still need to pay for or how much you are due back.
With Making Tax Digital, you’ll experience:
Better Communication With HMRC
With Making Tax Digital, you’ll have an easier time getting in touch with HMRC. You can contact them online through secure messages and webchats.
Correct Tax Information
Since everything would be digital, the paper-based bookkeeping would be replaced with digital tax accounts. You can easily access the information with the assurance that it’s 100% accurate.
The new reporting function of MTD would allow you HMRC to check your tax information anytime and ensure that human error is reduced.
Better Taxpayer’s Experience
HMRC is hoping that taxpayers would easily understand MTD, allowing them to better understand their taxes. They assure that MTD is almost like online banking.
How Can City Heights Accounting Services Help You Start?
City Heights Accounting Services can provide you the information and support that you need to understand Making Tax Digital. Our company will help you know the impact of MTD on you, your business, and clients. We can also help you develop strategic plans on what you need to do next.
Our company fully understands what you need to manage your records digitally. Here at City Heights Accounting Services, we have spent time and effort in training and developing our support services to help our clients through this time of transition.