What is Making Tax Digital?
Making Tax Digital is a move by the HMRC to digitise tax, whether you’re an SME, accountant or bookkeeper you will be affected.
On 1st April 2019 HMRC will change the way you submit VAT returns, you’ll no longer be able to submit manually through the HMRC gateway and will be required to submit using a compliant accounting software.
MTD is being rolled out in phases, with those above the VAT threshold of £85,000 being affected first.
Better use of information
Making Tax Digital will bring benefits to everyone. It means no longer having to give HMRC information that it already has, or that it is able to get from elsewhere, such as employers, banks and other government departments.
Tax in real time
HMRC will collect and process information affecting tax as close to real time as possible, helping to prevent errors and stop tax due or repayments owed building up.
A single financial account
By 2020, you will be able to see a comprehensive financial picture in your digital account, just like you can with online banking.
Interacting digitally with customers
Having access to a digital account will present you with an increasingly personalised picture of your tax affairs, along with prompts, advice and support through webchat and secure messaging.
Support from Kinspeed
Here at Kinspeed we are committed to helping businesses adapt their Sage software to ensure that the transition to MTD is as smooth as possible. We are with our customers every step of the way working closely with Sage to help clarify what Making Tax Digital means for you and your business.
From April next year, you will need to be working on a Sage version that will be compatible with the new HMRC requirements, which could mean an upgrade is needed.
Do I have to upgrade now?
No, you could continue to file your VAT returns on the HMRC website up until April 2019. BUT you will have to upgrade before April 2019 or you won’t be able to file your VAT returns at all!
Why upgrade now?
We advise to consider upgrading as soon as possible, as upgrading your software will make you compliant with HMRC, as well as new features and capabilities that your older version doesn’t have.
For more information on how Kinspeed will support you with Making Tax Digital, Contact us