What is Making Tax Digital?
How does this affect you? If you are not already required to have MTD compliant records, you will be in the future. The sooner you start to create and store your tax records digitally, the easier it will be to start submitting those records to HMRC in a digital format. We have already moved many of our clients to one of our recommended MTD compliant cloud-based software packages:
Not only does this ensure that they will be compliant when the time comes, it also means that they can start reaping the benefits of real-time records and add-ons apps.
For more information on the wider benefits of cloud-based accounting, visit Harold Sharp Digital Advisory.
If you are one of the few businesses not already managing your finances in a digital format, now is the time to act.
Alternatively, we can also offer a bridging solution. This enables us to pull data from your existing software into a format that is deemed acceptable by HMRC. The VAT return is then submitted directly from the bridging software.
Questions about transitioning to Making Tax Digital
Contact our team by email or call 0161 905 1616.
Making Tax Digital for VAT
Making Tax Digital for Income Tax
Self-employed and partnership businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2024.
What does this mean? When MTD for income tax becomes mandatory, affected businesses will be required to:
- maintain their accounting records digitally in a software product or spreadsheet (see above re MTD compliant software / bridging solution). Maintaining paper records will no longer meet the requirements of the tax legislation; and
- submit information quarterly to HMRC and finalise their tax position after the end of the tax year. The quarterly updates and end of year reports will need to made using a functional compatible software product that can access HMRC’s API (Application Program Interfaces) platform.
Self-employed businesses or landlords currently have the option to voluntarily opt-in to keeping digital records and submitting Income Tax updates to HMRC, instead of filing a Self-Assessment tax return, ahead of the requirement which will come into force in April 2024.
Making Tax Digital for Corporation Tax
Fintech Friday blog
As we begin the first unrestricted Summer for a number of years, we all want to maximise the amount of time available outside of work. With that...
This month we’re focusing on the most critical app of all… your actual accounts app, Xero! We get a lot of questions about getting information out...
In this month’s Fintech Friday (FTF), we’re throwing the spotlight on the recruitment industry. If you don’t work in recruitment, we strongly...
Subscribe to our monthly Fintech Friday
Find out more about how Harold Sharp works, and how we can help you.