Take the next step on the road to Making Tax Digital
Businesses, investors and workers across the UK face a challenging time ahead, as the Government continues to implement its Making Tax Digital initiative.
This landmark change in the recording and reporting of tax will gradually see the major components of taxation taken online, using the latest HM Revenue & Customs-compliant software, apps and programs.
Taxpayers must be fully prepared for these changes, as they could face fines or penalties if they do not comply in future.
Below are the key dates for Making Tax Digital to help you track your journey and ensure you are compliant with the changes ahead.
We know there is a lot to consider in the coming years, which is why our team have prepared a helpful guide, which is packed with information on the various stages of Making Tax Digital and what you may need to report.
What software will I need to be MTD compatible?
You will need to use what is defined as ‘functional compatible software’ to comply with HMRC requirements.
This means software that connects to HMRC’s systems via an Application Programming Interface (API). It can be a single program or a set of programs, so long as all programs are ‘digitally linked’.
Your software must be able to:
- Retain and preserve records digitally
- Create returns or quarterly summaries and send them to HMRC digitally
- Receive information from HMRC that your business has complied.
There are a wide range of cloud accounting solutions that are HMRC compliant, which we can advise you on.
As well as keeping you compliant, these platforms can empower your business with the latest financial information at any time and anywhere.
Remember, All digital records will need to be retained for a minimum of six years.
While the deadlines for the various stages of Making Tax Digital may seem some way off, the changes required to comply with this new tax system are complex and onerous.
Businesses and taxpayers may need to invest in new technology, such as cloud accounting software, and alter their method of recording and reporting accounts and tax information.
We have already helped a wide range of businesses with the initial stages of Making Tax Digital and can assist you by putting the necessary software, apps and procedures in place.
To arrange an initial Making Tax Digital consultation with our team, please contact us.