HMRC’s vision to digitalise the UK tax system, known as Making Tax Digital (MTD), is now well underway.
The process started in April 2019, with VAT-registered businesses with turnover exceeding the VAT threshold (currently £90,000) being required to use commercial software to maintain their VAT records and send their VAT information to HMRC.
MTD is now due to be rolled out for Income Tax from April 2026, so it is important to ensure your business is ready today.
What is Making Tax Digital(MTD)?
MTD is HMRC’s plan to digitally overhaul the UK’s tax reporting system.
The Government has decided that HMRC will be “one of the most digitally advanced tax administrations in the world”.
That is why MTD has already been rolled out as mandatory for VAT reporting, with Income Tax soon to follow.
The transition will significantly change the way your business operates. Tax returns, payments and financial records will all need to be carried out online using HMRC-approved software packages.
Fortunately, Glazers Chartered Accountants are here to help ensure that your transition goes as smoothly as possible.
Making Tax Digital – Next Steps
How can we help with Making Tax Digital (MTD)?
At Glazers, we believe that preparing for MTD in advance is the best step to a smooth transition.
Our team are helping clients to get to grips with cloud accounting for MTD, which enables them to start storing, managing and processing their accounting information online today.
For more information, contact us on our 020 8458 7427.