Working with you to setup your digital accounting software ready for the new HMRC digital inititive.

Making Tax Digital is a HMRC initiative announced in the 2015 Budget that aims to simplify and modernise the tax system for both individuals and businesses. The Making Tax Digital roadmap sets out an ambitious vision on how the tax system will be transformed for the digital age.

 

When will Making Tax Digital be implemented?

 

The rollout of Making Tax Digital (MTD) is set to follow a period of consultation and commence from April 2018, the implementation will be staged over a 2 year period.

 

Making Tax Digital key points?

Here are the key points in regards to how MTD will work.

 

Businesses will be required to file ‘Summary Data’ on a quarterly basis, this is not as complex as a full tax return and something more akin to a VAT return.

 

The Summary Data will consist of total income and total expenditure divided into categories, e.g. advertising, rent, travel etc.

 

Businesses will be required to use digital tools software to maintain records of their income and expenditure. HMRC will not be providing their own software.

 

Businesses will have the option to report more than quarterly if they choose to do so.

 

An ‘End of Year Declaration’ will be filed 9 months following the year end date.

 

Businesses that are VAT registered will be able to file just one report with their VAT figures and summary data combined.

 

Further Information on HMRC Tax Digital

 

HM Revenue and Customs - Making Tax easier

HM Revenue and Customs - Making Tax Digital