What’s the Verdict on Making Tax Digital?
MTD Explained
Many businesses have already embraced the digital method of submitting VAT to HMRC. If you haven’t made the switch yet, don’t worry—we’re here to help simplify the process.
The Updated Deadline for Making Tax Digital
Due to the UK government’s focus on Coronavirus and Brexit, HMRC is postponing the enforcement of Making Tax Digital (MTD) for new taxes or businesses. The earliest start date for income tax returns to comply with MTD is likely to be April 2024. This extension provides a bit more time for everyone to prepare.
However, it’s wise to start setting up your systems ahead of the deadline. Here’s why…
Why Making Tax Digital is Better ?
Enhanced Efficiency
Transitioning to Making Tax Digital may feel daunting, but using MyTaxDoc can simplify the process. Our team will manage compliance and ensure you submit quarterly taxes without the stress, helping you avoid potential fines.
User-Friendly Experience
Cloud-based bookkeeping software from MyTaxDoc is designed for ease of use. With intuitive dashboards providing real-time insights into your finances, managing your accounts becomes straightforward and even enjoyable. If you prefer, you can leave it to our accountants.
Improved Accuracy
Our digital systems reduce the risk of human error by automating calculations. By consistently logging your transactions, you can trust that everything is accurately recorded, minimising the chances of complications with HMRC.
Embrace Making Tax Digital
Making Tax Digital is here to stay, and there’s no escaping it! You can either choose to manage your finances using HMRC-approved software or enlist the help of a trusted accounting firm. Either way, Making Tax Digital offers a valuable opportunity to streamline your financial processes, giving you greater clarity and control over your accounts. With MyTaxDoc, you can confidently navigate this transition and focus on what truly matters—growing your business.
Frequently Asked Questions
How do I become compliant with Making Tax Digital?
To comply with MTD, you must use HMRC-approved software to record your accounts and submit your finances. You can find suitable software using HMRC’s search tool or opt for an accountant who already uses MTD-compliant software—like mytaxdoc—to handle everything for you.
Is mytaxdoc compliant with Making Tax Digital?
Absolutely! We utilise software that meets MTD requirements. If you prefer to avoid the hassle of setting up a new digital system, get in touch with us today, and we’ll ensure your accounts are fully compliant.
What are MTD Digital Records, and what do I need to keep?
Keeping digital records is essential under MTD. You must store your records digitally, either on a computer or in the cloud. Handwritten invoices and receipts must be transferred to MTD-compliant software before submitting your returns. Remember, while you’ll need to maintain original paperwork for HMRC inspections—typically for six years (or ten for certain cases)—we at MyTaxDoc can digitise your records for you, saving you time and ensuring compliance.
What are the advantages of becoming VAT registered?
- Reclaim VAT: You can recover VAT paid on goods and services, potentially saving money if you collect more VAT than you pay.
- Attractiveness to Clients: VAT registration allows your business customers (if they’re also VAT registered) to claim back VAT, making you a more appealing choice.
- Preparation for Growth: If your business is approaching the VAT threshold, registering early can help you adapt smoothly.
- Professional Credibility: Being VAT registered enhances your image as a serious business player, reflecting a higher turnover.
Will Making Tax Digital affect sole traders?
Yes, if you are VAT registered and your turnover exceeds £85,000, you must comply with MTD, regardless of whether you’re a sole trader or a limited company. Eventually, MTD will likely apply to all businesses with a turnover over £10,000, including self-employed individuals and landlords.
Ready to Transform Your Accounting Experience?
You entered your profession to pursue your passion, not to worry about taxes and compliance. Let’s start with a FREE discovery call. No obligation, just a chance to learn how much easier your financial management can be with MyTaxDoc.
