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Making tax digital

Making Tax Digital (MTD) is a system put in place by the Government which will require businesses to use software to manage their financial affairs in accordance with Government regulations. There are a range of different software platforms available that are fully MTD compliant.

  • Advantages of MTD for your business:

    When MTD is fully operational it will allow businesses to have a clear overview of their tax account. Businesses would be able to view all their tax information and obligations in one place. This will enable a more streamlined service between advisors and agents, whilst also improving the businesses ability to manage their budgets and plan more efficiently and effectively.

  • Who it will affect?

    The first tax which MTD applies to is VAT. Currently MTD for VAT affects anyone who has a turnover exceeding £85k. However, from 1 April 2022 all VAT registered businesses will be required to sign up, regardless of their level of turnover.

    In future years MTD will also be used for Corporation Tax & Income Tax.

  • What you need to do to comply?

    Before signing up to Making Tax Digital for VAT you’ll need either:

    • a compatible software package which enables you to keep digital records & submit VAT Returns
    • bridging software to connect non-compatible software (e.g. spreadsheets) to HMRC systems

Please click here to search for software providers.

Or to find out more about signing up to making tax digital please click here.