As described on the Government’s website and material, Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
They further describe their ambition is to become one of the most digitally advanced tax administrations in the world, so a very bold claim and target. So the making Tax Digital campaign is making fundamental changes to the way the UK’s tax system works – transforming tax administration so that it is:
- more effective
- more efficient
- easier for taxpayers to get their tax right
Here’s a link to the Government website to get the full step-by-step guide and information they provide.
Making Tax Digital Software
So the good news for you as a business owner is that all of the major software providers are well equipped to make the process easy for you. This includes companies such as Sage, Xero and Quickbooks. It’s highly likely that you are either using one of these or another similar competitor so the process of ensuring compliance should not be too difficult.
As the Xero site says, this is not an option ” The use of this technology is mandatory so it’s a good idea to upgrade your software, or migrate your accounts, before the end of your next VAT period. “
Sage are offering a consultation service for anyone looking for assistance in the process and obviously trying to sell you their software as the best tool to get the job done. You can see more on their Making Tax Digital page here.
As Quickbooks point out your annual turnover needs to be over £85000 for the rules to apply to you, so if you are below this threshold you have no need to do this but as it is a fast and efficient way of filing your returns we would recommend looking into whatever stage your business is at.
Making Tax Digital Help
MCC Accountants have helped many clients move over to the new system in the last few months so if you are looking for some advice we would be happy to help.
Please give us a call or drop us a line to begin your Making Tax Digital journey .