Making Tax Digital (MTD) is quite literally just around the corner. By as early as April, thousands of businesses need to be fully compliant with MTD, which is why it is important to plan ahead.
Spearheaded by HM Revenue & Customs (HMRC), MTD is the Government’s plan to slowly digitise Britain’s tax reporting system over the coming years, in a bid to make our nation’s tax system one of the most advanced in the world.
Naturally, for businesses that do not currently store and manage their records digitally, the project poses a significant administrative burden – and expert advice will be required to assist with this game-changing transition.
Who will be affected?
The majority of VAT-registered businesses with turnover above the £85,000 VAT threshold will be expected to be compliant with MTD from April – which is why it is particularly important for these businesses to start planning now.
However, it is worth noting HMRC is expected to roll out MTD for other taxes and types of businesses very shortly afterwards – so it is wise for all businesses to seek advice sooner rather than later.
What can businesses do to prepare?
Ahead of MTD, businesses will need to ensure that all of their relevant tax and financial information has been migrated to an MTD-friendly software package, which will enable them to communicate with HMRC when it comes to submitting tax reports.
One of the best ways to get ready for MTD today is to start using a cloud accounting solution. Our cloud software accountants already support clients to use compliant software – and we want to help you too.
Get in touch with Grunberg & Co now to find out how we can help.