Making Tax Digital

The time has come

At PBT our aim is to keep you up to date, informed and knowledgeable of any changes happening in the finance sphere. Once such change that has recently come in to play is MTD, Making Tax Digital. The purpose of which is to “modernise” the tax system.

If you are ahead of the game and already MTD ready, this is great news. However if you have been trying to avoid facing the compulsory change, now is the time to get sorted and the team at PBT are ready to help.

If we think back to when RTI, Real Time Information, was introduced, it was the BIGGEST change in the tax system at the time and caused waves throughout businesses. If we fast forward to the present day, we are all dealing with RTI pretty well now, right? Change can be daunting but the key is to embrace change and prepare yourself as best you can.

So here is the essential facts you need to know:

As of April 2019, businesses above the VAT threshold of £85,000 are required to file their VAT returns electronically using accounting software. They are also obligated to keep digital records of all their transactions. This means that manual submission through the HMRC gateway for VAT is no longer be accepted for most businesses.

So what is the advice for businesses?

  • Ensure you have MTD for VAT compliant software
  • Start maintaining digital business records for the purposes of VAT
  • Sign up with HMRC MTD for VAT
  • Start submitting your VAT return through your compliant software

This only scratches the surface and we fear for small businesses who may be currently submitting their returns manually, using spreadsheets for their records or using non compliant software. How will they receive the advice they need?

We are here to help businesses of all sizes through the change and we are here to help you. If you want our expert help, get in touch with our team today.

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