What is making tax digital for business?
It’s a government scheme to change the way that accounting information is recorded and transmitted to HMRC.
How does it affect my business?
The earliest impact on businesses will be the requirement for VAT registered businesses to file their vat returns using Making Tax Digital (MTD). This means that you will need to do your bookkeeping and vat returns on MTD compliant software, and you can no longer use the existing (free) HMRC website.
What do I need to do?
You need to work with your software provider to ensure that the software will be compatible with MTD. If your bookkeeping software will not be compatible, you will need to change providers.
Can I carry on using my existing bookkeeping software and just put summary totals into the MTD compliant software to file my return?
No. HMRC require that the MTD system must have digital access to the underlying transactional records. Automated (API) links between existing software and an MTD compatible system are acceptable and may be useful for individuals with specialised or excel software.
Typing in summary totals with your digits does not count as a digital link!
When does it start?
The changes take effect for VAT returns covering a period beginning on or after 1 April 2019.
How can SBPK help?
We are delighted to be able to offer you training on a variety of modern cloud and standalone systems which are compatible with Making Tax Digital.
We can help move your data over from legacy systems to newer MTD compatible systems.
We also provide a complete outsourced bookkeeping and VAT service which will of course be MTD compliant.