What is Making Tax Digital (MTD)?
Making Tax Digital is a key part of the government’s digital strategy to make it easier for individuals and businesses to calculate their tax more easily and efficiently, thus allowing them to keep on top of their affairs. Businesses will therefore be required to keep their records digitally using MTD accounting software or other electronic means, e.g. on spreadsheets, and HMRC believe that these measures will significantly reduce errors in tax calculation.
When does it come into effect and will it affect my business?
Businesses with a turnover of over £85,000 and therefore registered for VAT have been required since 1 April 2019 to keep digital records and to use MTD software to submit their VAT returns. VAT-registered businesses with a taxable turnover below £85,000 will be required to follow MTD rules from April 2022.
How can Downham Associates help?
Our team of dedicated MTD specialists are fully conversant with all the different aspects of MTD and will be able to advise you on what is required going forward, whether you are currently keeping paper records, a series of spreadsheets or already using accounting software. We will also be able to advise on the most suitable software packages and modules for your business before you make that decision as certain options suit some businesses better than others.
