Review your accounting so big shake-up isn't too taxing
Are you ready for Making Tax Digital?
MTD is the UK’s biggest tax shake-up in a generation.
If you file a VAT return, you’ll soon be required to do so in an MTD-compliant way, subject to certain exceptions. This is because HMRC is moving towards a fully digital based tax system.
Going forward these changes will apply to a wide range of taxpayers, including most businesses, self-employed professionals, and landlords. This "new and improved" tax system will require the majority of business owners to maintain digital records on compatible software.
MTD is being introduced in stages. Your annual taxable turnover will determine when you need to start taking part, with the first group to be affected as VAT registered businesses above the VAT threshold (£85,000). However, the timeline for roll-out for some has been extended from April 1 this year to October 1 this year. This is following HMRC’s pilot testing, where it became apparent that certain businesses found the process more complex.
From April 2020, it is expected that the Government will introduce changes for businesses who pay corporation tax and additional taxes will be introduced to the regime from there on out. MTD will involve fundamental changes in the way we submit information to HMRC, and it’s important that you review the way in which you prepare your accounting records, to ensure a smooth transition to a digital future.
Our advice would be to see this new regulation as an opportunity by moving your books onto a cloud accounting software. This software may offer many benefits as well as being MTD compliant.
Whittingham Riddell are hosting free, no obligation, ‘Go Digital’ events for businesses to attend, where they will cover: how Making Tax Digital will affect you, how you can become compliant and why Cloud Accounting softwares may be beneficial. These events will include a live demonstration and free advice on the software options available.
If you would like to book onto an upcoming session, you can book online at www.whittinghamriddell.co.uk/go-digital
Alternatively, call our marketing team in Shrewsbury on 01743 273273.
Roy Jackson, Partner, at Whittingham Riddell
