Although Making Tax Digital (MTD) seems like a big change for businesses and individuals alike, the MTD scheme will in fact make it easier to manage, report and pay your taxes to HMRC. And we’re here to help you every step of the way.
What is “Making Tax Digital”?
It’s HMRC’s biggest change to the tax system in decades, aiming to take the whole operation into the digital sphere in the next few years.
MTD for VAT rolled out for businesses with annual turnover above £85,000 from April 2019, and extended to all VAT-registered businesses, regardless of turnover, from April 2022.
So, what’s next? MTD for Income Tax. It's set to make significant changes to how some of those registered for Self Assessment file their taxes.
What does it mean for me?
If you’re eligible, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will replace the current requirement to file an annual Self Assessment tax return. Instead, you’ll use software, like QuickBooks, to keep digital records and file updates at least every quarter through MTD-compatible software to HMRC.
MTD for Income Tax is set to roll out from April 2024 and will cover all unincorporated business and landlords for Self Assessment with annual business/rental income over £10,000.
JPW Accountancy are here to help
Thankfully, we are here to help advise you with your transition to MTD. We have everything you need to become MTD compliant, with minimal disruption to your business. Whether that’s planning for the switch-over, upgrading your software or providing training, we’ll offer you peace of mind.
Uploading your financial data to the Cloud may seem daunting. But recording business related transactions digitally, rather than in a spreadsheet, has its benefits for you and your business.
Plus, we’re here to help move your accounts into the digital age with minimal disruption.
Not only will online accounting software make it easier to manage, report and pay your business taxes to HMRC, you’ll benefit from:
We’ve teamed up with QuickBooks – the world’s #1 online accounting solution, that will instantly start saving you time. We are also FreeAgent Practitioners, who have been voted the UK's #1 bookkeeping software for small businesses. So whichever software you'd prefer, we have the expertise to help you out.
From the moment you move to the cloud, you’ll start to enjoy the following benefits: