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ACCOUNTANCY & TAXATION - SHARRON SKEEN

Making Tax Digital - It’s Coming…


Making Tax Digital an HMRC initiative to put everyone’s tax affairs online, but are you prepared for it?


HMRC announced plans to simplify the tax system and provide tax information in “real time” rather than waiting months after a business’s financial year end. It was planned to start in April2018 for all unincorporated businesses, but this was deferred to April 2019 for unincorporated businesses and landlords below the VAT threshold (currently £85,000). However, this does mean that unincorporated businesses, self-employed people and landlords with turnovers over the VAT threshold who pay income tax on their profits and also pay Class 4 National Insurance contributions will be required to start using the new digital service from April 2018.


The other key dates are:


Other things to note are that businesses, self-employed people and landlords with a turnover of less than £10,000 will be exempt from MTD. People who are in employment and have additional income of more than £10k per year either through self-employment or property will also be required to use the digital service.


There are still certain details which need to be confirmed and these will be introduced in the Finance Bill 2017, these are as follows:



There is a lot involved and businesses need to start preparing now, whether they submit the updates themselves, or if they have their accountant do it on their behalf.


This includes ensuring that the business records are kept on suitable accounting software.


There are plenty of suitable accounting software packages available but we favour (and recommend to our clients) Xero (www.xero.com/uk/) because of its ease of use and it is online, giving you access your accounts wherever you have internet access. There is also an app for keeping records “on the go”.


By using appropriate software, the process of MTD should be a relatively smooth one and all businesses will benefit from having a year-to-date snapshot of their tax position.


At Westwood Accountancy, we can assist you with getting your accounting records onto a suitable accounting software system in preparation for MTD and ensure the process is as pain free as possible.


We believe that the information in this article is correct as of June 2017. However, the specific Making Tax Digital proposals are subject to consultations and may change.




For more information contact Sharron at info@westwoodaccountancy.com

Westwood Accountancy

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