What You Need to Know about the HMRC’s Upcoming “Making Tax Digital” (MTD)

Making tax digital (MTD)

  • A new requirement from the HMRC, UK government.
  • Are you ready?  Too difficult to understand?
  • The below Q&A prepared by C & T Accountants will make it easier for you to understand. Contact details of C & T Accountants can be found at the end of this article.
  1. Tell me about MTD

MTD is a fundamental change to the administration of the UK tax system. It will affect how businesses and other organisations, agents and individuals maintain their accounting and tax records and how they transact and communicate with HMRC.

  1. What are the changes?

Businesses and organisations (which includes those with income from property) will be required to maintain digital accounting records. Maintaining paper records will cease to meet the legal requirements in tax legislation.

Businesses and organisations will be required to use a functional compatible software product to submit their returns to HMRC. The current HMRC online tax return services will be withdrawn for those within the scope of the MTD rules.

  1. Can I still keep my records manually (in paper) and file the VAT return through the HMRC VAT portal?

You will still need to keep your paper documents but you will need to record it in electronic form e.g. using a software.

  1. What are the key dates?

April 2019 – for businesses (both sole trader and limited company) with turnover above the VAT threshold of £85,000

April 2020 – for other businesses (not decided yet but it will not be earlier than April 2020).

  1. What are business owners responsibilities?

It is business owners responsibilities to ensure that they keep their record in digital format from the effective date. There will be fine and penalty for business owners who fail to comply with the requirements.

  1. Where can I find more help?

The team of qualified ACCA, or ACA, ICAEW at C&T Accountants is all about helping small businesses to understand the new requirements so that they can position themselves to comply with the new tax rules. C&T Accountants can help by providing the following services:

  • Seminars & workshops
  • Experienced accountants
  • One-to-one meetings

Call now:  0749 013 0207 or email info@cataccountants.com

Or visit us at: C & T Accountants Limited, 6-7 St. Mary at Hill, City of London, EC3R 8EE

Website: http://www.cataccountants.com/