MTD HUB

What is MTD?

MTD stands for Making Tax Digital.  It’s a new rule that’s coming in in two stages.  The first stage comes into effect from April 2019 and is for VAT Returns (affecting businesses with turnover above £85,000); and the second stage – which is about submitting quarterly accounts for income tax and corporation tax purposes and VAT Returns for small VAT registered businesses – is due to come in from April 2021 at the earliest.

It means from April 2019, VAT Returns for businesses with turnover above £85,000, will have to be submitted to HMRC via the new MTD system, and records will have to be kept in digital format, possibly using cloud accounting software; but not necessarily.

Instead of using cloud accounting software, bridging software can be used to upload records to the new MTD website.

Eventually, probably from April 2021, businesses and landlords will also need to submit quarterly profit and loss accounts to the MTD website – as is done currently with VAT.

 

See our videos below for more information.

Quick fire MTD Q&A

An overview of frequently asked questions on stage 1 of Making Tax Digital which is operative now, (stage 2 is expected in April 2021). Questions include joining voluntarily vs waiting until the deadline, what happens if you don’t comply, specific timescales for signing up and dealing with overseas VAT.

Do you need cloud accounting software to comply with MTD?

While we are doing everything to ensure that our clients are compliant with MTD, this video looks at the option of using bridging software and saving on the costs of setting up with cloud accounting software.

Making Tax Digital for VAT

Making Tax Digital is the biggest change in the tax system since self-assessment. Stage started in April 2019 where VAT registered businesses with over £85,000 turnover must join. Also, when a VAT registered business goes over the threshold during any 12 month period they must join and when will businesses with smaller turnovers have to join.

Get in touch today for a free consultation.

We are very happy to meet you to discuss your business or even your idea for a business. We will advise you on the most tax efficient structure if you are setting up and we can review your business if you are already trading.