Wondering how Making Tax Digital will impact you and your business? We’re here to help. Here’s everything you need to know about the current and upcoming changes, and how using our tax advisory services in Peterborough could benefit you.
What is Making Tax Digital?
First things first, what is Making Tax Digital? To put it simply, it is the UK Government’s initiative to introduce a fully digital tax system in the UK, bringing it in line with other countries that already use the system. In fact, the aim is to stand head and shoulders above those other countries, with the Government aiming to develop ‘one of the most digitally advanced tax administrations in the world’. The MTD system will see all relevant taxpayers keep digital records, as well as using MTD-compatible software to file their taxes electronically.
What changes are being introduced?
The Making Tax Digital Scheme was announced back in 2019 and has since been rolled out in stages. The timeline for those changes is as follows:
- April 2022: All VAT-registered businesses must file their taxes in line with the Making Tax Digital rules
- April 2024: Making Tax Digital will apply to Income Tax returns filed by self-employed business owners and landlords
- April 2025: Making Tax Digital for Income Tax will come into effect for partnerships with individual partners
- 2026 onwards: HMRC is planning to introduce Making Tax Digital for Corporation Tax from this date
Working with a trusted local accountant will ensure that you are working within the timeframes set out by the UK Government, and that you are filing your taxes correctly. They will also keep on top of all new developments in the MTD scheme and inform you of any relevant updates.
How will it benefit you?
The transition to Making Tax Digital isn’t there to create more work for you and to add stress to your tax submission process. Instead, it is there to work in your favour! The new software collects a wealth of data from your day-to-day business activity to build an accurate picture in real time. It will be able to highlight areas of oversight and possible errors quickly and accurately, helping you to make less mistakes and saving you time. According to the government, using MTD software will boost your productivity and aid in your financial planning.
Working with us
We comply with all regulations, including the new MTD requirements for businesses. If you are at all unfamiliar with the changes you will need to make, we will explain everything plainly so that you know how to proceed. Using the correct software at all times, we will collect all the relevant data and then submit it to HMRC for you, keeping you informed at every stage of the process.
We have an incredible eye for detail, and will ensure that everything has been completed correctly before your taxes are filed. That’s why it pays to work with an experienced local accountant!
Get in touch today
Want to find out more about us and our tax advisory services in Peterborough? Contact Linda Carr Accountants today, and we will answer all of your questions.