Do you want to learn more about the Making Tax Digital (MTD) scheme introduced by HMRC? It is already possible to submit your tax return online! The strategy being introduced by HMRC is going to make the whole process digital; for VAT from April 2019 then income and corporation tax from April 2020.
Most taxpayers struggle with the whole process of tax submission and so this digital project is being introduced to ensure errors and mistakes are minimised. The team from The Kelvin Partnership will take you through how Making Tax Digital will affect you and detailing all there is to know!
Communicate with HMRC, Store Tax Information and Submit your Tax Return Online with Making Tax Digital
What is Making Tax Digital?
Making Tax Digital is HMRC’s mission to bring the UK tax system into the digital world.
Making Tax Digital is a change to the British tax system. It is going to affect how businesses, individuals and other organisations keep their accounting records; it will also change the way that taxpayers communicate and carry out transactions with HMRC.
Why is it being introduced?
There are a number of reasons that HMRC are introducing this scheme. Not only is it a better way of keeping record of how much tax you owed or how much tax is owed to you as a rebate – HMRC think it will;
- Help to replace paper based bookkeeping practices among businesses and individuals. This is not only beneficial for the environment and the quest to make businesses more conscious of their paper consumption, but it will also enable you to make sure that the information HMRC has on file about your business is completely correct.
- Reduce the chance of errors due to the immediate nature of the MTD software.
- Create an easier way of understanding how much tax is owed.
- Improve communication between HMRC and the business/individual because of webchat and secure messaging.
Who must use the Making Tax Digital system?
- Making Tax Digital will be compulsory for VAT starting from April 2019. After this date, it will be required for businesses with a taxable turnover above the VAT threshold to maintain their records digitally, using MTD compatible software to submit their VAT returns. For businesses below the VAT threshold MTD will only be available on a voluntary basis.
- The information that needs to be submitted will remain the same.
- The MTD scheme will not affect income and corporation tax until April 2020.
How can The Kelvin Partnership help you?
The help provided by our experts from The Kelvin Partnership will of course depend on the existing VAT submission practices in place at your business. The strategy being rolled out within the next 2 years will affect most clients and therefore we are more than prepared when it comes to providing any MTD advice. From necessary MTD software guidance and support to the digital submission of tax.