Making Tax Digital (MTD) is a HMRC initiative that will revolutionise the UK tax system and ultimately bring an end to Self Assessment.
Making Tax Digital aims to make tax administration more effective, efficient, and easier for taxpayers through the implementation of a fully digitalised tax system.
This new tax system will require most business owners to maintain digital records using compatible software.
Current timetable for Making Tax Digital
VAT
- Since April 2022, all VAT registered businesses must retain digital records and submit their VAT returns to HMRC using compatible software.
- This includes those below the VAT registration threshold.
Income Tax
- From April 2024, self-employed businesses and landlords with business turnover above £10,000 are to report under MTD for Income Tax. This measure has been delayed by a year.
- From April 2025 general partnerships will join MTD.
- The date at which all other types of partnerships will be required to join is to be confirmed.
Corporation Tax
- From April 2024 companies can start using an MTD for Corporation Tax pilot scheme.
- From April 2026 companies join MTD for Corporation Tax.
OUR DIGITAL PARTNERS
All VAT registered businesses must now keep digital records and submit their VAT returns to HMRC using compatible software.
Below are the solutions we use to ensure your accounting is compliant.
Xero
Preparing for digital tax starts with managing business accounts online – it makes the transition smoother and business more efficient.
Xero is Britain’s leading online accounting software, and over 1 million subscribers around the world use Xero save time and get paid faster.
Having consulted with HMRC on Making Tax Digital, Xero is committed to supporting small businesses and their advisors through the transition.
Quick Books
QuickBooks is an accounting software package developed and marketed by Intuit.
QuickBooks products are geared mainly toward small and medium-sized businesses and offer on-premises accounting applications as well as cloud-based versions that accept business payments, manage and pay bills, and payroll functions.
Dext
Dext (formerly Receipt Bank) makes keeping track of your receipts and invoices, simple, turning bits of paperwork into data you can use.
Dext integrates seamlessly with the leading accounting, payroll and payment software on desktop and cloud, so you can build an end-to-end solution to suit any business.
Iris Snap
An app led service that will solve that age old problem of clients swamping you with big bags of receipts.
Working digitally - an end-to-end process. IRIS has created a seamless process that eliminates paper documents. From you initially entering data into their online bookkeeping software, to your eventual submission of their accounts and tax returns.
KashFlow
KashFlow small business accounting software has been designed to save you time and effort by letting you manage your accounts on your terms anytime, anywhere.
With inbuilt features enabling faster payments, compliant tax filing & less time spent on bookkeeping, it’s no wonder so many UK small businesses and sole traders choose KashFlow’s accounting software.
