Are you ready for Making Tax Digital (MTD)? More information on Making Tax Digital >

Making Tax Digital

HMRC is Making Tax Digital

Your legal responsibility.

Do you know what is expected of you?

In April, 2019 new legislation will come into place called Making Tax Digital. MTD is the start of a fundamental change to the administration of the UK tax system. This means that businesses with a turnover above the current VAT threshold of £85,000 will have to go digital by this time, with the new legislation being implement in a staggered approach for other businesses until 2020.

We want to support you

Or

Call us

Everything you need to know

MTD FAQ

The what, when where and why of Making Tax Digital

What is Making Tax Digital (MTD)?

Making Tax Digital is the name given to the legislation being introduced that outlines a new way of tax record keeping and VAT returns.

What does MTD mean for me?

Making Tax Digital requires you to keep your VAT records digitally and for you to submit your VAT return to HMRC through an MTD compliant software like Quickbooks.

When does MTD take affect?

Making Tax Digital for VAT starts from 1st April 2019. Any VAT returns that begin on or after this date must follow the Making Tax Digital rules.

How do I prepare for MTD?

You need to put in place an MTD compliant software like Quickbooks. Speak to us at Total Accounting to make sure you are ready.

Making Tax Digital Ready

Why should I consider using Total Accounting as my Making Tax Digital advisor?

The team at Total Accounting are ahead of the curve when it comes to MTD. We have been getting clients MTD compliant since 2017. As a QuickBooks Platinum Partner, we fully understand what is required to get you MTD ready from day one. QuickBooks is the world’s #1 provider of accounting software and we are all qualified to the highest level.

By using QuickBooks you’ll be keeping digital records and all your data is secured in the cloud. You can also prepare and directly submit VAT returns to HMRC today and when Making Tax Digital arrives, making you fully compliant. Total Accounting can get your data converted and up in running in a matter of days.

What is Making Tax Digital (MTD)?

Making Tax Digital is the name given to the legislation being introduced that outlines a new way of tax record keeping and VAT returns.

What does MTD mean for me?

Making Tax Digital requires you to keep your VAT records digitally and for you to submit your VAT return to HMRC through an MTD compliant software like Quickbooks.

When does MTD take affect?

Making Tax Digital for VAT starts from 1st April 2019. Any VAT returns that begin on or after this date must follow the Making Tax Digital rules.

How do I prepare for MTD?

You need to put in place an MTD compliant software like Quickbooks. Speak to us at Total Accounting to make sure you are ready.

Who is not impacted by Making Tax Digital for VAT?

Making Tax Digital for VAT does not impact businesses who meet one or more of the following criteria:

  • Businesses who are exempt from online VAT submissions
  • Businesses who are not VAT registered
  • Businesses with a taxable turnover below the VAT threshold in the 12 months leading up to 1st April 2019 or any 12-month period (so long as they deregister from VAT).
My VAT returns are already submitted online, am I not already compliant?

Unless your VAT returns are being submitted through software that has been approved by HMRC as being Making Tax Digital compliant then you are not already compliant. From 1st April 2019, the HMRC web page used by businesses and their accountants to submit VAT returns will be closed to those required to comply with Making Tax Digital.

How to comply with Making Tax Digital for VAT

To comply with Making Tax Digital for VAT you will need to do all the following by April 1st, 2019:

  • Keep your VAT records digitally
  • Submit your VAT return to HMRC through MTD compliant software.

You must also do the following by April 1st, 2020:

  • Digitally link software you use for VAT preparation and filing if you use more than one software solution.
Where do I get Making Tax Digital (MTD) software?

A list is available on GOV.UK. HMRC are not offering Making Tax Digital software.

How can my accountant help me with MTD?

Accountants can support you through Making Tax Digital so long as they have the following:

  • Permission from you to act as an agent on your behalf for VAT
  • Registered for an Agent Services Account and linked your HMRC account to it.
  • Access to Making Tax Digital compliant software.
Why is Making Tax Digital happening?

Making Tax Digital is HMRC’s attempt to transform the UK tax system into one of the most digitally advanced in the world for the benefit of individual and business tax payers. There are four main benefits:

  • Digitalisation will improve the quality of record keeping.
  • Less manual entry should mean fewer errors.
  • Managing business affairs will become more efficient – especially if you adopt a cloud-based solution which can be accessed anywhere.
  • You’ll spend less time gathering and inputting data.

The best solution for Making Tax Digital

With QuickBooks it will be easy to meet all HMRC’s requirements.

QuickBooks makes it easy to meet HMRC’s requirements for Making Tax Digital. With QuickBooks, all your transactions will be accurately logged with your VAT information, ready to be submitted electronically in compliance with HMRC’s new digital tax rules. Plus, you’ll find QuickBooks is loaded with other features to keep your business ticking along before and after April 2019.

We want to support you

Or

Call us
Back to top

Stay updated by email