The digital shift is coming…
Major changes are being made to the way in which all taxpayers interact with HM Revenue & Customs (HMRC). This is known as Making Tax Digital (MTD).
What is Making Tax Digital?
HMRC wants businesses to report their information on a far more frequent basis using a digital system. From 1 April 2019 MTD will only apply to VAT. From 1 April 2021 the regime will be extended to income tax and corporation tax.
What does this mean for you?
All businesses will need to review the way they keep their accounting records. HMRC require that all businesses maintain their records in a digital format. There will be no available free software, so a commercial provider of software that is compatible with MTD will need to be used.
For a summary of how this initiative has progressed so far, you can download guidance documents below. We will also keep this page updated with the latest information from HMRC through our blogs.
Useful HMRC publications:
- Software suppliers supporting MTD for VAT (July 2018)
- Making Tax Digital for VAT (July 2018)
- Making Tax Digital for business (December 2017)