Making Tax Digital with QuickBooks
What is Making Tax Digital and who will be affected?
Making Tax Digital is being introduced for businesses earning over the current VAT threshold (£85,000). MTD for VAT is the governments plan to help make tax submission more efficient, effective and easier for UK taxpayers
When should I start submitting with Making Tax Digital?
Businesses affected by MTD will have to start submitting via Making Tax Digital compatible software after 1st April 2019. Accounting periods before this date will not fall under MTD.
|If your VAT periods are as below||Your first mandatory MTD VAT period is||Your VAT mandatory deadline|
Can I still use spreadsheets for MTD?
For business owners who still want to use their Excel spreadsheets can still do so, but you will need to use a Bridging software alongside your spreadsheets if that’s what you want to use to keep your VAT records. The Bridging software will be needed to transfer the data from your spreadsheet electronically to the HMRC system.
The Benefits of Making Tax Digital:
- Access to tax information in one place, you won’t have to wait until the end of the tax year.
- Able to plan and budget efficiently
- Real-time viewing of the business’s tax records
- Ability to collaborate with your accountant online
Thankfully, we are here to help advise you with your transition to MTD. We have everything you need to become MTD compliant, with minimal disruption to your business. Whether that’s planning for the switch-over, upgrading your software or providing training, we will get you ready for the change.