Making tax digital - 1 April 2019 - Are you ready?
HMRC’s ‘Making Tax Digital’ is due to go live on 1st April 2019.
What is Making Tax Digital?
Making Tax Digital is a government initiative to modernise HMRC’s tax systems, the aim to make the administration of tax simpler and more efficient. All of your data will be in one place and you will report to HMRC in ‘Real time’. A similar initiation was enrolled to PAYE and Payroll with the introduction of Real Time Information in April 2012.
Does it apply to me?
From 1 April 2019 VAT Registered businesses including Limited Companies, sole traders and property businesses operating above the VAT threshold of £85,000 will be required to use HMRC’s Making Tax Digital Services to maintain records digitally and submit VAT Returns in a specified format using compatible software.
In April 2020 this will also apply for Corporation and Income Tax. This is a significant change for both large and small businesses.
What do I need to do now?
If you have not already, you will be required to ensure that your accounting software is ‘MTD’ compliant by this date.
You will need to ensure your current accounting software is ‘MTD’ compliant. As your accountant and business advisor we can certainly assist you to prepare your current software or explore alternative packages to suit your business requirements.
How can Knights Lowe support you?
Knights Lowe can support you with this. We are proud to partner with a number of software providers and can assist you to explore which option is right for you and your business and obtain you favourable discounts.
We can offer software packages that not only comply with MTD but can also fully automate your bookkeeping process saving you time and enabling ‘real time accounting’.
If you are unsure whether your current software is MTD compliant or would like to explore your options please call us.