Making Tax Digital
Core Accounting Services
Making Tax Digital (MTD) is an initiative from HMRC, that aims to make the UK’s tax system one of the most digitally advanced tax administrations in the world.
What does Making Tax Digital mean for Businesses?
MTD has been designed by HMRC, Accounting Bodies and software providers to make it easier for both businesses and individuals to pay the right tax and to gain better visibility of what their business will owe throughout the year.
MTD for VAT
In April 2019, HRMC introduced Making Tax Digital for VAT, making it mandatory for VAT registered businesses with a turnover above the VAT threshold (previously £85,000, now £90,000) to keep records digitally for VAT purposes. Submission of VAT returns will need to be made via digitally compliant software.
Businesses that meet the criteria outlined had to move away from existing desktop or manual recordkeeping processes to an online, compliant accounting software that meets with HMRC’s MTD requirements to submit their VAT return, if they had not already done so.
1 April 2022, businesses that were VAT registered regardless of turnover had to submit their returns through MTD-compliant software.
There is a planned phasing over the decade to move all remaining businesses onto MTD ready software for both Income Tax Self Assessments and Corporation Tax submissions.
Proposed MTD Timeline
Getting your business MTD ready
If you are already using accounting software to keep your business financial records, we can assess if it meets the MTD requirements for Corporation Tax and ITSA.
If you are still using Excel or a traditional notebooks then it is critical to get your business onto MTD compliant software. Not only will it allow record keeping to be more manageable but allow you better tracking of many aspects of your business. We are a purely cloud based accountancy service provider and we will be able to migrate you onto the best cloud software that meet your needs and is MTD ready.
We are Xero Migration Specialists and it is our preferred software of choice. We can assist anyone wishing to switch accounting platforms on the migration process as well as make your business MTD ready for Corporation Tax and ITSA ahead of its enforcement by HMRC.
Ready to become Making Tax Digital compliant?
Book a call with HorizonFD to see how we can assist
