Making Tax Digital
MTD for Business is Expanding
Currently only VAT registered businesses with turnover in excess of £85,000 are mandated to sign up to HMRC's 'Making Tax Digital' (MTD). However, in July 2020, it was announced that all VAT-registered businesses must file digitally through Making Tax Digital from
April 2022, regardless of turnover.
MTD for Income Tax & Self Assessment was originally expected to be implemented in April 2023, but the Government has since announced a delay of one year, beginning April 2024.
This will affect businesses with income greater that £10,000 per year from self-employment, partnerships or property businesses. This means that it's likely the majority of tax payers under self assessment will be required to use MTD compliant software by 1st April 2024. It is proposed that the Self Assessment tax return will be replaced by five new reporting obligations made during and after the tax year. There will be quarterly updates required, and a year-end final declaration. Digital records of all transactions will be needed, which will form the basis of the quarterly updates.
If you are one of the businesses that are affected, fear not, we are here to help!
Whilst many small businesses see MTD as an additional burden, we know this change can really improve processes and drive improvements in business. Yes, there will be an initial resource outlay involved, and yes it may take some time too. However, have no doubt that up to date accurate and reliable information is crucial for any business in today's economy.
We can advise on a suitable software provider and help get you up and running; we'll even be able to provide hands on training too. Once set up you won't look back. You'll have real time information available at the your fingertips, you'll always have a really good idea of your commitments and what funds are available at any given time, but more importantly, you will be making strategic decisions on current information.
If you have already moved your records keeping onto fully compliant software and you want an accountant to help with monthly, quarterly and annual reporting/tax, then we can tailor our services to give you just the right amount of support at an affordable cost.
Software Providers
We are already a partner and certified advisor with Xero, who we believe have the best software for the majority of cases. However, we work with many software providers to ensure a solution that is suitable for each individual customer. We work with QuickBooks, Freeagent, Capium, Sage and many others, and will continue to support any compliant software.
Whatever your needs, whatever stage you are at, we can help. We would love to hear from you, so why not give us a call to find out more about the accounting, tax, finance and business services we can offer? We can arrange a no obligation complimentary consultation to discuss your requirements in detail and determine what we can do to help. Why not contact us today?
We cover most of South Devon, including Torquay, Paignton, Brixham, Totnes, Newton Abbot and all the surrounding villages.
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