What is 'Making Tax Digital' (MTD)?
Making Tax Digital (MTD) has been introduced by HMRC to help individuals and businesses to get their tax right. It means many people are leaving their spreadsheets or paper records behind and moving over to a new system. At the moment, Making Tax Digital is all about VAT submissions. But over the coming months and years it will include Income Tax and Corporation Tax too.
How do businesses comply with 'Making Tax Digital'(MTD)?
To comply with Making Tax Digital for VAT, businesses have to keep digital records. This must be done using what HMRC calls 'compatible software’. In other words, it must be able to connect directly to HMRC and send your details to them using digital links.
When will 'Making Tax Digital' (MTD) affect me?
MTD was introduced for nearly all VAT-registered businesses with a taxable turnover above £85,000 in April 2019. They have to use Making Tax Digital software to keep digital records and make VAT submissions to HMRC. From April 2022, this will be extended to all VAT registered businesses in the UK.
Skillman Accountancy Limited uses QuickBooks' HMRC-recognised MTD software, which is designed for small businesses and is a Quickbooks MTD ProAdvisor.
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