The Governments flagship initiative – Making Tax Digital (MTD) – comes in to force from April 2019, bringing with it a requirement to ensure that your records are kept electronically and returns submitted digitally. With the likely need to change the way you manage your business and penalties for those who fail to do so, are you ready for MTD?
MTD is the biggest change in tax administration in recent years which will reap benefits for both businesses and HMRC alike. Calcutt Matthews have been at the forefront of making sure that our clients are prepared for MTD since HMRC announced the changes in 2015 and included it in our budget newsletter that year. At Calcutt Matthews, we’ve been ‘MTD compliant’ in the work which we carry out for clients for years prior to the April 2019 deadline. For those not yet prepared for the changes or who do not yet understand what MTD entails, we will be delighted to consult on how MTD will affect you individually.
Making Tax Digital is being introduced gradually under what HM Revenue & Customs have describe as a ‘soft landing’. The April 2019 deadline will require that all VAT registered businesses with a turnover exceeding the VAT registration threshold (currently £85,000 per annum) submit their VAT returns digitally, according to HMRC’s new Making Tax Digital standard.
Help with MTD
If you’d like us to help you establish what changes you need to make in your business to comply with the new rules, we’ll be happy to assess your current records and systems. Starting from £400 + VAT, we’ll spend time with you to understand how you manage and administer your business now, what changes you need to make to be ready for Making Tax Digital, and how you can achieve that in a way that best suits you and your team.
If you’d like to simply hand over the work of preparing and submitting the VAT returns which fall under the new MTD requirements from April 2019, our team will happily take over the preparation and submission of your VAT returns using our own MTD compliant software, leaving you free to concentrate on what you do best. Whilst HMRC are yet to confirm the timescale and requirements for further changes to business record keeping and reporting, our process already complies with everything that we expect Making Tax Digital to entail after the initial deadline.
For further information and help getting your business ready for MTD, please contact Emma Waters or Mike James, who’ll be happy to answer any questions you have.