Making Tax Digital, MTD

As we prepare for a Digital future we would like to keep you all up to date on the timescale set by HMRC for digital record keeping and the mandation of quarterly reporting. VAT registered clients will see these changes from April 2019. We are currently working with our VAT registered clients to prepare them for this which largely involves using cloud accounting software.

Non VAT registered businesses may see these changes as early as April 2020 however there is some uncertainty regarding this.

In a nutshell each business is going to have to record each transaction digitally and submit this information to HMRC every quarter totalling 4 submissions during the year. There will then be a fifth submission which will include adjustments for Capital Allowances, Stock Valuation, Debtors and Creditors. A sixth submission will then be sent which will include any other taxable income.

A more detailed letter has been sent to our clients, all we ask of them is to respond to our requests promptly and help us to help them to make the changes happen as smoothly as possible.

MTD Updates