The start of Making Tax Digital (or MTD for short) happened on the 1st of April 2019 and it’s the biggest shake up the UK tax system will have seen for many years.
HMRC’s main goal of MTD is to make tax administration simpler, faster and more efficient when it comes to us managing our accounting processes. It is also HMRC’s aim to become one of the most digitally-advanced tax administrations in the world, but ego aside, MTD is a good thing.
Here’s what you will need to do:
MTD doesn’t need to be a big scary thing; the new tax rules will ultimately help small businesses get a better grasp on their finances. Yes, HMRC is making us all do this gradually and nobody particularly likes change, but the benefits of taking your business digital are a real game changer.
HMRC is very aware that businesses will need time to adjust to the new processes and become more familiar with the requirements of MTD.
During the first year, HMRC will be lenient with businesses who can demonstrate they are doing their best to comply with the new rules.
If you’re not already using software, don’t panic, we can help!
“I just wanted to say thank you so much for introducing me to Xero. It has made life so much easier. I will admit I was sceptical and with so much to do, I had routines and everything fitting in so changing things does take persuasion. I will admit I pretty much went with it as with MTD didn’t have much option. But wow, I am a convert now and love it. So much so that I am now getting our other business onto Xero which isn’t VAT registered but you have managed to convert me from my spreadsheets. Thank you for making life easier and simpler for a busy working Mum.”
Caroline Hancock, Hancock Maintenance Services & Garden Beehives:
