Here at CDC Accounting, we have received some queries from our clients about what the upcoming digital changes to tax management will mean for their businesses moving forwards.
April 2019 will see the arrival of the new ‘Making Tax Digital’ (MTD) VAT service, intended to assist businesses in improving the efficiency of their operation, and the accuracy of their tax.
What will MTD involve?
From 1st April, the new MTD system will require businesses with a taxable turnover exceeding the £85,000 registration threshold to store their VAT records digitally, and file them using software that is compatible with the new VAT system.
Businesses operating under this threshold are not required to use the new digital tax service, but the option to do so will be available to them to make use of the intended benefits.
Making Tax Digital has been designed to provide businesses with online real-time awareness of the tax they are due to pay, as opposed to an annual tax return.
The system is also intended to ensure that businesses do not have to duplicate their information if they have provided it previously, or submit it if it can be obtained elsewhere.
How can I prepare for the changes?
With months to go before the new system comes into place, it would be good practice to ensure that you are starting to keep your records digitally, and to store them in accordance with the rules set out in the HMRC’s July notice, which can be found at www.gov.co.uk.
How can CDC help me?
Much of how we operate here at CDC ties in with the new digital expectations for businesses today. Through cloud-based accounting systems linked to the HMRC such as Xero, we can assist you from a variety of distances, helping to make your finances more straight-forward, and less physical.
For more information, or to have a chat with the CDC team, give us a call on 01490 372012, or visit our website.