The Overview – Making Tax Digital (MTD) for VAT
Making Tax Digital (MTD) is part of the government’s plans to make UK tax system more effective, efficient as well as easier for taxpayers. The change is currently applicable for Value Added Taxation (VAT) but from April 2020 more tax categories are planned to include.
HMRC has made it mandatory for;
➀ VAT registered Businesses;
➁ with Taxable turnover* above the VAT threshold (£85k for tax year 2019-20);
➂ from VAT periods that started on or after 1 April 2019
to keep digital records and file VAT returns online using compatible software.
Objectives & Benefits
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. Making Tax Digital (MTD) is making fundamental changes to the way the tax system works, transforming tax administration so that it is:
➀ More Effective
➁ More Efficient
➂ Easier for taxpayers to get their tax right
We have expertised & can help you at no additional cost
We have invested number of manhours on Making Tax Digital (MTD) updates, the impacts it may have on businesses and to expertise on transition/ migration process. Experts at FinancialYoo are fully equipped and ready to help your business to comply with HMRC rules.
➀ Our FY SMART© Accounting Service includes everything for VAT & MTD compliance, at no additional charges
➁ Some accounting software including Xero and QuickBooks are compatible to file VAT online at very low or no additional subscription fee
Let us help you in this transition, Click here to contact now!
* Subject to detailed check where past 12 months turnover and other parameters need to be considered.
* Source: https://www.gov.uk/guidance/making-tax-digital-for-vat