Monday, 5 August 2019

Making Tax Digital: are you ready?

If you're a VAT-registered business you need to be signed up to the UK Government's Making Tax Digital (MTD) scheme – an initiative that’s moving tax returns to the digital space.

This means having the right software and processes in place to be MTD-compliant, with a range of penalties that come into action if your business doesn’t meet the deadline.

Making sure you’re MTD-compliant

The Making Tax Digital for VAT scheme makes it mandatory for all VAT-registered businesses (with a few possible exemptions) to keep records in a digital format and to move over to quarterly digital VAT returns from 2019 onwards.

If your business is already using online accounting software, like Xero, then you're already set up with the right software and integrations to make your digital submissions to HMRC's proprietary application programming interfaces (APIs).

But if you're using an accounting system that’s not MTD-compliant, there's some serious work to do before you're ready for the first VAT submissions which start on the 7th August 2019.

To meet your regulatory requirement, you need to:

  1. Move to an MTD-approved software solution – so you can easily keep digital records, compile your VAT returns and submit them to HMRC’s digital platform.
  2. Get your staff trained up – so you and your team are familiar with your new accounting software and can carry out all the relevant bookkeeping tasks.
  3. Connect to the relevant MTD systems – by working with your accountant/tax agent to connect with their agent services account (ASA) and the Making Tax Digital system.

Talk to us about registering for Making Tax Digital

If you’re not get signed up to the Making Tax Digital scheme, now’s the time to take action.

We’ll help you move over to online accounting, streamline your record-keeping processes and get you set-up and registered with MTD – so you’re ready for the digital approach to tax and finance.

Get in touch to get MTD-ready

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