Making Tax Digital - Hayvenhursts Cardiff, South Wales #mtd #makingtaxdigital

For more information on complying with making Tax Digital (MTD) https://hayvenhursts.co.uk/accountancy-services/making-tax-digital-mtd-faqs/

Have you seen the TV adverts or heard the radio adverts and have questions regarding the UK Government initiative to “make tax digital”?

Or, have you had one of the “letters of encouragement” (the Governments words, not ours) to join MTD?

You may be asking yourself “do I need to sign-up for making tax digital” or “do I need to buy software for making tax digital”? There are many questions the MTD scheme has raised, especially for small business owners and even more especially for those just under, or just over, the VAT threshold.

Don’t Panic – Help is at Hand
Getting the wrong side of the “VAT Man” can give many business owners sleepless nights.

Using computers and software fills many people with dread.

Please don’t panic or worry? Help is at hand.

Firstly, the HMRC are going to be “considerate” with companies that are doing their best to comply, even if they are not fully compliant.

HMRC knows businesses will require time to become familiar with the new requirements. During the first year of VAT mandation, HMRC will take a light-touch approach to penalties by not issuing filing or record keeping penalties where businesses are doing their best to comply with MTD.

MTD For VAT in the UK – Let’s Explain The Jargon!
It can be so easy to misunderstand the jargon, so let’s start by explaining the terminology being used.

What is Making Tax Digital?
Making Tax Digital, very often shortened to “MTD” is a plan by HMRC to streamline information to the “Tax Office”. HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is more effective, more efficient and easier for taxpayers to get their tax correct.

At the moment, MTD is only being applied to VAT.

Why are the Government Moving to MTD?
Keeping records on paper and submitting VAT returns to HMRC manually results in errors – in a YouGov poll, 61% of businesses said they have previously lost receipts. Errors also occur in the manual transposition of data and manual calculations.

MTD offers a more integrated approach to business administration and tax, reducing the time businesses spend on administration in the longer term and making it easier for them to get their tax right.

It is thought the introduction of MTD will also streamline processes within HMRC, reducing overhead costs.

Need help or advice? https://hayvenhursts.co.uk/accountancy-services/making-tax-digital-mtd-faqs/

This video: https://youtu.be/3459zG2teos

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