Making Tax Digital (MTD) is intended to bring the UK tax system into the 21st century by providing individuals and businesses with a modern, streamlined system to keep their tax records and provide information to HM Revenue & Customs (HMRC).
From April 2019, businesses above the VAT threshold have been required to set up a digital tax account, submit tax information every three months and file quarterly returns online. MTD signalled the end of paper accounting for millions of businesses across Britain and applies to sole traders, partnerships, companies, LLPs and charities.
Key Features of MTD
• Quarterly submissions
• You will have to submit tax data every three months via online software in addition to your annual return.
• Automatic data recording
• Computer software will record money coming into and going out of your business. You will just check the data and update it to HMRC each quarter.
• Advance notice of tax liability
• Every quarter you’ll know what your tax liability is.
How We Will Help You With MTD
While there are many online software packages, we recommend Xero as we find it the most comprehensive, the simplest and the most user friendly of the software packages.
We will:
• Set up Xero for you and train your staff in how to use it.
• Provide ongoing support and advice on all things Xero.
• Help prepare or review your quarterly returns.
• Advise you when MTD will become compulsory for your business
• Hold your hand throughout the process, ensuring that MTD improves the transparency and efficiency of your business.
