What is Making Tax Digital?
At Budget 2015, the government set out its vision for a transformed tax system, and in December 2015 it published the Making Tax Digital roadmap. This set out the government’s plans to make fundamental changes to the tax system – transforming tax administration by 2020 so it is more effective, more efficient, and simpler for taxpayers.
What does this actually mean?
From April 2019, VAT registered businesses (including self-employed and landlords) with a turnover above the VAT registration threshold (currently £85,000) had to:
- keep their VAT records digitally
- provide their VAT return information to HMRC through Making Tax Digital compatible software
For other businesses the implementation date was delayed until now.
Rosemary Bookkeeping work with a variety of MTD compatible software providers, so we can find just the right solution for your company to help you be compliant.
What are the advantages of going digital?
Digital accounting software has significant advantages over the traditional ways of bookkeeping.
And not let’s forget that as a VAT registered company you do actually need to be MTD compliant.