It is everywhere, but do you really know what MTD is and are you prepared for the change?
Making Tax Digital (MTD) is a key part of the government’s plan to make it easier for individuals and business to get their tax right and keep on top of their affairs as well as transforming HM Revenue and Customs (HMRC) into a world leading, digital tax authority. Below is a quick overview on what it is and what you need to do by the 1stApril 2019:
- All VAT registered businesses with a taxable turnover above £85,000 (VAT Threshold) must keep digital records and file their VAT Returns using software. This includes VAT registered Charities with a turnover above the threshold.
- The reason behind MTD is to make it easier for individuals and businesses to get their tax right and keep on top of their annual tax returns. Last year the Government lost nearly £8 Billion from errors made by businesses when inputting their tax.
- The software businesses must be able to integrate with the HMRC gateway, with the added ability to keep records in digital form, create a VAT return from those digital records and preserve the digital records.
What do you need to do?
At Kinspeed, we believe getting things right first-time round is critical to our customers success. Our advice: do not rush into buying new business software or changing your current software. This is a great opportunity to review your current systems and see if there is an alternative option out there that not only makes you MTD compliant but can also provide a long-term solution for your business.
What are your options?
If you are currently using Sage software, you have two options:
- If you are currently paying a subscription for one of Sage’s cloud products or looking to upgrade to one i.e. Sage 50cloud, the MTD module is included in your package at no extra cost.
- If you are on a “Perpetual” or old version of Sage, you can continue to use this software. However, you must purchase the MTD module to bolt on to your current package before the MTD legislation comes into place on April 1st2019 to become compliant.
If you are concerned about MTD or have any questions, we are offering currently offering complimentary business reviews to help you find out if what you currently use is compliant or the steps you need to take to get MTD ready. We offer a wide range of accounting solutions to suit all businesses as well as training to get you up to speed on how to use it. Feel free to get in touch today to see how we can help.