Making Tax Digital is HMRC’s move to digitise tax. As of April 2019, businesses with a turnover above £85k will have to submit VAT returns through the HMRC gateway using commercial accounting software. 89% of UK business will change the way they process tax. If you're going to be impacted you can get everything you need here on our MTD resource hub.
Getting ready for MTD
Digital content, expert led webinars, live events, webchat and telephone support, all the way to bespoke services designed to support your business including 1-2-1 training and onsite support.
HMRC loses £9bn each year on taxation errors, and they believe that's partly due to the way businesses declare their income - digital record keeping and automated VAT submissions will make the process easier and error-free.
Part of improving VAT means you'll need to record your transactions throughout your VAT period and send HMRC an automated nine box VAT return at the end of each period, directly from your software. It's a simpler, more efficient process that will be less disruptive to your business in the long run.
Recent research has shown that moving to digital accounting software saves small-medium sized businesses £17,000 annually.
Digitising tax is a good thing. You'll no longer have to provide the same details twice. You'll get a real-time view of your tax so you're not taken by surprise when bills come in. Having all of your tax details in the one place makes everything simpler.No matter how you choose to work, all Sage solutions are packed with innovative technology that unlocks the power of the cloud so you'll be MTD compliant.
How to manage business admin and get ready for Making Tax Digital
Making Tax Digital: A guide for businesses
Making Tax Digital for accountants