Making Tax Digital (MTD) is here for small businesses and the self-employed. What’s it all about? Essentially, HM Revenue & Customs (HMRC) introduced MTD to help individuals and businesses pay the correct taxes. Right now, Making Tax Digital concerns VAT submissions. In due course, it will include Income Tax and Corporation Tax, too.
Comply with MTD
So, how does MTD affect SMEs? To comply with HMRC’s rules your business must keep digital records. It’s time to shelve spreadsheets and paper records and move to a new system. Basically, compliance involves using ‘compatible software’. This software connects directly to HMRC. It then sends your VAT return information using digital links.
Small businesses and MTD for VAT
In 2019, HMRC introduced MTD for most VAT-registered businesses. At that time, it affected those with a taxable turnover above £85,000. Consequently, these firms already use compatible software. They rely on it to keep digital records and submit VAT returns. What’s changing? In a nutshell, MTD applies to all VAT-registered businesses in the UK from 1 April 2022. This is irrespective of turnover level.
Unsure about small businesses and MTD for VAT? Do seek advice. We have a wealth of experience using the latest software. Therefore, we can help you to meet your statutory obligations. Plus, there’s an added bonus; it’s a chance to improve the way you operate.
Our team works closely with the award-winning experts at QuickBooks and other major software suppliers to make the transition as smooth as possible. So, get in touch now on 01785 243276.