What happens if I need to get ready for Making Tax Digital?
Making Tax Digital (MTD) is quite literally just around the corner. By as early as April next year, hundreds of thousands of businesses will need to be fully compliant with MTD, which is why it is important to plan ahead in advance.
What is MTD?
Spearheaded by HM Revenue & Customs (HMRC), MTD is the Government’s plan to slowly digitise Britain’s tax reporting system over the coming years, in a bid to make our nation’s tax system one of the most advanced in the world.
How will businesses be affected?
Naturally, for businesses that do not currently store and manage their records digitally, the project poses a significant administrative burden – and expert advice will be required to assist with this game-changing transition.
Who will be affected?
The majority of VAT-registered businesses with turnover above the £85,000 VAT threshold will be expected to be compliant with MTD from April 2019 – which is why it is particularly important for these businesses to start planning ahead ASAP.
However, it is worth noting HMRC is expected to roll out MTD for other taxes and types of businesses very shortly afterwards – so it is wise for all businesses to seek advice sooner rather than later.
What can businesses do to prepare?
Ahead of MTD, businesses will need to ensure that all of their relevant tax and financial information has been migrated to an MTD-friendly software package, which will enable them to communicate with HMRC when it comes to submitting tax reports.
One of the best ways to get ready for MTD today is to consider a cloud accounting solution.
The virtual accounting packages supported by AGS can allow you to access your key financial information in real-time, simultaneously with our team. This powerful software can also enable you to automate processes such as generating invoices and easily storing and collating receipts and business expenses.
Cloud accounting is no longer the future – it is the present, and it will make the running of your business much easier.
AGS is helping businesses like yours get ready for Making Tax Digital. No matter what size your company is, you will be affected. To find out how our accounting and business advice services can help you through the maze that is MTD, contact us today.
