What is Making Tax Digital?
Making Tax Digital (MTD) is a UK government initiative that aims to modernise and streamline the tax system by using digital technology. The primary goal of this scheme is to make tax administration more effective, efficient, and easier for businesses and those who complete their own tax returns.
What must I do if I have a business?
If you have a VAT-registered business, you must now ensure you keep accurate digital records relating to payments and expenses, and your tax return must be filed using compatible software. HMRC will sign up all companies to Making Tax Digital for VAT automatically, unless an exemption has been requested.
What are the main benefits of Making Tax Digital?
Making Tax Digital enables self-employed people and businesses to calculate their income tax easily and correctly. The initiative will also help to reduce the amount of tax lost to avoidable mistakes. One main advantage is the improved accuracy of digital calculations and the fact the return is sent directly to HMRC.
What can I do if I need help with my tax return?
You can contact a Stroud business advisory for help with all accountancy services. Agencies such as randall-payne.co.uk/services/accountancy/tewkesbury-accountants/ provide professional and friendly services for your business.
According to the Government website, the days are counting down until the deadline for tax returns. With a digital system, you can submit directly and send your completed return straight to HMRC at the touch of a button.
What are the other advantages?
It is beneficial for businesses as it encourages digitalisation and is therefore more reliable and cost-effective. Fewer hours are lost on completing returns too. For the most current and detailed information on Making Tax Digital, you can refer to the official HMRC website or consult with a tax professional in the UK.