OVERVIEW OF MAKING TAX DIGITAL
Updated: Sep 29, 2022
Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
easier for taxpayers to get their tax right
MTD FOR VAT
All VAT-registered businesses are required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns.
MTD FOR INCOME TAX
Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for Making Tax Digital for Income Tax from 6 April 2024.
Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital service for Income Tax.
Business-ology partner with Sage Cloud and Xero, offering services from Accounting Software set up and Training to regular weekly, monthly, quarterly and annual Bookkeeping data entry, balance sheet reconciliations and regular detailed reporting of your Businesses progress and development.
The majority of customers want to get their tax right but the latest tax gap figures show that too many find this hard, with avoidable mistakes costing the Exchequer £8.5 billion in 2018 to 2019. The improved accuracy that digital records provide, along with the help built into many software products and the fact that information is sent directly to HMRC from the digital records, avoiding transposition errors, will reduce the amount of tax lost to these avoidable errors.
Contact our Business-ology team now to get the advice you need to ensure you are
compliant with Making Tax Digital.
Telephone: 01925 632586 or email: firstname.lastname@example.org