Making Tax Digital
Making Tax Digital is a much used phrase if you run any kind of business, self employed or otherwise. It already affects anyone who is VAT registered and will affect almost every business in the UK by the end of 2020.
HMRC’s stated ambition is:-
“to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
- more effective
- more efficient
- easier for taxpayers to get their tax right”
Initially the pace of change was very swift, causing many concerns particularly for small businesses and the self employed so changes were deferred until at least April 2020 for taxes other than VAT. The government further announced in March 2019 that they would ‘not be mandating Making Tax Digital for any new taxes or businesses in 2020’.
There is no doubt that Making Tax Digital is a major and complex change to how you run your business and it cannot be ignored. You must be aware of what you need to do well in advance of the deadlines.
The HMRC website offers a large number of guides, some more helpful than others. If you have any queries about aspects of digital taxation you should consult these as a first step.
Some of the most useful are:-
Making Tax Digital for VAT as a business: step by step
How Making Tax Digital for VAT affects your business
Getting ready for Making Tax Digital
Getting compatible accounting software
Agent services and Making Tax Digital
Signing up for Making Tax Digital for VAT
Making Tax Digital for Income Tax
VAT Notice 700/22: Making Tax Digital for VAT
Making Tax Digital for Business – stakeholder communications pack
Whilst you may generally be happy with maintaining your own accounts, it may be beneficial to bring in an outside expert to help you manage the changeover and ensure you do not inadvertently breach any of the complex regulations or requirements. If you would like a free consultation please Contact us and we will do our best to help you.
