Making Tax Digital (MTD)
The end of the VAT return?
Making tax digital (MTD) is a big initiative by HMRC and their desire to become one of the most digitally advanced tax systems in the World.
Launched already for VAT, it signalled the end of the paper return, but for those businesses who are already using software, particularly cloud software, the impact of MTD has been far less pronounced, as there were already methods to submit tax somewhat digitally in place.
Does it fundamentally change what is required for VAT? No, not at all. Whilst it does have its obvious benefits in removing paper or keying in records, the same level of care and attention is needed by any business owner when it comes to ensuring their VAT position is correct and accurate.
More taxes going digital on the horizon?
MTD for VAT is just the start. There are already plans underway to implement MTD for self employed businesses and landlords with incomes over £10,000 from the 6th of April 2023. We are near enough certain that much like VAT, the work involved to prepare and validate records will not change, more the process of submitting records.
We are keeping a keen eye on developments as they unfold, so we are as ready as can be for the next wave of digitisation. Keep an eye on our blog for news and developments.
Mayflower is MTD ready
With cloud accounting a big part of our offering, MTD has been pretty straight-forward for us and our clients, thanks already to their adoption of digital processes.
We help our clients make the leap and become fully MTD compliant. Whilst there are many options to become MTD ready, if you are not yet using cloud-based accounting software, we suggest you see if our cloud accounting boot camp could work for you.
You don’t need your head in the clouds to be cloud-accounting ready. See how we can work with you and your business to make the most out of state-of-the-art cloud tech and take you from paper to app.
Ready to start the journey?
To get help with your accounts and start freeing up your time to focus on growth, talk to the Mayflower team today.