Making Tax Digital
Clayton & Brewill can help you navigate your way through the new Making Tax Digital requirements.
What is Making Tax Digital?
Making Tax Digital is HMRC’s plan to modernise and simplify the tax system, by moving to a digital system.
All taxpayers will have access to a secure digital tax account, which will allow them to interact more easily with HMRC.
You will be able to register, file, pay and update your information at any time of the day or night, and at any point in the year, to suit you. Once the initiative is fully operation, the vast majority, will no longer need to submit the dreaded annual tax return.
What are the Making Tax Digital requirements for businesses?
From 1 April 2019 businesses with an annual taxable turnover of more than £85,000 will be required to maintain digital records for VAT and report to HMRC on a quarterly basis.
There are plans to roll out digital reporting to those business under the VAT threshold from April 2020, but this date may change.
Those businesses affected by the requirements will need to invest in the relevant software to allow their records to be both recorded and submitted in the correct format for HMRC.
HMRC has confirmed that business will still be allowed to maintain spreadsheets for record keeping. However, they will need to be able to submit the necessary information, in the relevant format to meet Making Tax Digital Requirements.
How can Clayton & Brewill help?
Clayton & Brewill can help you get prepared for Making Tax Digital.
We can recommend digital accounting systems that comply with Making Tax Digital and help you get set up. You then either, maintain the records yourself – with support from us for reporting purposes, or we can maintain your records on an ongoing basis.
If you already use a digital accounting system, we can help you to check that it complies with Making Tax Digital requirements.
Even if your business is below the turnover threshold, we would advise that you start to get prepared for digital reporting. It is likely to become a requirement for the majority of businesses in the next few years and the sooner you get your records in order, the sooner you’ll be better placed to handle any changes.
To find out more about Making Tax Digital and how we can help ensure you’re prepared, please contact a member of our friendly team.
Making Tax Digital resources
One of the software solutions we provide to help clients comply with Making Tax Digital is KashFlow, watch a demo of the software – KashFlow Demo