What is Making Tax Digital (MTD)?
Making Tax Digital is a key regulatory change put in place by HM
Revenue and Customs (HMRC), which looks to reform and modernize the
UK tax system. The initiative was introduced to ensure the UK tax
system is efficient and user friendly for tax payers. It looks to
ensure digitally stored records are kept up to date and captures
the correct information, and as a result reduce errors on
declarations made to HMRC. Other areas such as Income Tax and
Corporation Tax, have been put on hold until 2020 at the
earliest.
What it means for your business
For VAT periods starting on or after April 1, 2019, all UK
businesses above the £85,000 VAT threshold will need to keep
records digitally and submit VAT returns to HMRC using
MTD-compliant software. Currently, less than 15% of businesses use
online software to submit VAT returns, therefore MTD will have a
significant effect on UK VAT registered businesses. Businesses with
a taxable turnover
