Help and support for making tax digital
Making Tax Digital (MTD) came into force in April 2019 for businesses with a taxable turnover above the VAT threshold, currently at £85,000.
MTD requires qualifying businesses to keep digital VAT records and submit VAT returns digitally which is implemented via MTD compatible software.
From April 2022 there will be an extension to the legislation for smaller VAT registered owners. So, to get up to speed, HMRC is continually updating its resources with support for firms to help get businesses ready for Making Tax Digital for Income Tax and VAT.
The HMRC resources can be found here www.gov.uk/guidance/help-and-support-for-making-tax-digital which include informative webinars and videos covering topics such as:
- Compatible accounting software
- Keeping digital VAT records
- Signing up for Making Tax Digital for VAT
- Making Tax Digital for Income Tax Self Assessment
MTD compatible software
HMRC provides advice on products that can be used to send and receive information digitally.
There are two types of compatible software:
- VAT record keeping software allowing you to store records digitally which works directly with HMRC systems
- Bridging software which works with spreadsheets, accounting systems and bookkeeping solutions enabling you to send and receive VAT digitally
What’s important is that any device you use to record information on are linked together.
Our blog on modernising tax administration has further information which was announced in the 2021 Spring Tax policy and consultation.
Tax services Oxted
If you have any questions about tax administration and Making Tax Digital, get in touch with our accountants at Mckenzies.
We can help you navigate making tax digital so that your business is compliant. We also offer outsourcing services such as payroll services, bookkeeping, company secretarial and VAT returns. By outsourcing accountancy services this allows you to spend the time on growing your business and achieving your goals whilst we ensure you meet the necessary tax deadlines.