Making Tax Digital (MTD) is part of the government’s plan to make it easier for businesses to stay on top of their day-to-day accounts. HMRC wants to be one of the most digitally advanced tax administrations in the world – improving efficiency, effectiveness and ease of compliance. The plans signal the end of paper accounting for millions across Britain.
From April 2019, legislation will require businesses above the VAT threshold to set up a digital tax account and file quarterly returns online. Preparation starts now, with businesses and accountants moving online to improve efficiency, boost profitability and make the transition painless.
Communications with HMRC will become automated, making it crucial to maintain up-to-date accounts.
Tax summaries will need to be submitted at least quarterly through software – giving HMRC an accurate view of accounts.
Businesses over the VAT threshold will need to use software to submit their tax returns as soon as April 2019.