Are you ready?
Following a government announcement, the introduction of Making Tax Digital has been slowed to take into account the need to test and implement new systems and educate taxpayers (personal and corporate). Access the latest #BrighterThinking on how Making Tax Digital will impact personal and business tax management.
Digital by default
The Government is determined to push ahead with its ambitious Making Tax Digital (MTD) initiative and these changes will have an impact on businesses.
Good news for SMEs and Landlords?
The government has responded to concerns about the implementation of the Making Tax Digital project. Do these updates make good business reading?
VAT: DIGITAL DELAY
HMRC have announced delayed implementation of the Making Tax Digital for VAT (MTD) rules for certain businesses.
Your Making Tax Digital Essentials
We have already helped hundreds of clients move their accounting records online, apply best practice processes and controls, and take advantage of the associated efficiencies and technologies. MTD provides many compelling reasons to review your business’ record-keeping and ‘future-proof’ your systems. Through tailored guidance and training, we can provide bespoke support to help you turn digital. We have already seen these benefits become reality for hundreds of clients that have moved their records on to a digital platform.
An Introduction to Making Tax Digital
Your Brighter Thinking MTD Team
Oliver Finch – Systems Expert
Robert Facer – VAT Expert
Simon Armstrong – Systems Expert
Andrew England – Corporate Tax Expert
What are the potential benefits to me?
Well, because the the proposed quarterly submissions will generate an estimate of the tax bill, individuals and businesses should be able to plan their cashflow in a timely fashion.
Businesses can expect to have a single Digital Account and will be able to see all their taxes (Income tax, PAYE & VAT) in one place and be able to transfer an overpayment of one tax against the liability of another with a few clicks of a button.
The government has looked at digital trends and assessed that it is inevitable that tax will move into the digital era in the next decade or two and decided to embrace this with an eye on making the UK’s tax system more efficient, easier to understand and more effective.
We are now fundamentally a digital society with banking, shopping and entertainment all being done online.A recent internet access survey shows 89% of households have internet access with 82% of adults accessing it almost daily and 70% of adults accessing the internet ‘on the go’ using a mobile phone or smartphone.
What will making tax digital mean?
Individuals and businesses will be required to report their income and expenses to HMRC at a minimum on a quarterly basis (although if you wish to update more frequently HMRC have said you will be able to do this!), and with an annual final declaration.
This will be recorded in a taxpayer’s digital account with an estimate of the tax payable based on these figures allowing an individual to plan their cashflow.