Making Tax Digital
HMRC is working on a new tax system for all businesses called "Making Tax Digital" otherwise known as MTD. The system is not yet supported in Law, but HMRC anticipate it will be part of the business landscape from next year with the introduction of digital record keeping and electronic filing for VAT from 1 April 2019.
Essentially, the requirements of MTD for VAT will mean all registered businesses with a turnover in excess of £85,000 will need to file their VAT returns using a process known as API (Application Program Interface) and will need to use third party software for their bookkeeping activities or where spreadsheet bookkeeping is being used adopt a new method of API submission .
For MTD VAT submissions, our practice is in the final stages of developing a spreadsheet to HMRC API interface which will mean for clients who do not currently use third party bookkeeping software, a low cost, efficient alternative using spreadsheets remains a viable option.
Going forward and from 2020, MTD will mean all businesses whether conducted by individuals, companies or partnerships will have to start using software or API enabled spreadsheets to report their business financial performance to HMRC on a quarterly basis.
With significant experience in accounting software and systems as well as expertise in accounting and reporting, our practice is well placed to get clients up and running in MTD with minimal fuss or bother.