What Is Making Tax Digital?
So what is making tax digital? Well In his March 2015 budget the Chancellor announced that this was “the end of the tax return as we know it”. The key change is that businesses will be required to digitally file tax returns on a quarterly basis.
So what does making tax digital mean for you?
The new digital tax accounts (DTAs) will require most self-employed people, businesses and landlords to keep digital records and update HMRC at least quarterly. This will give individuals and businesses a real-time view of their tax affairs.
What are digital records?
Keeping records in a digital form means that each business and landlord will have to use a form of accounting software which will have the capability to communicate with HMRC’s systems.
When will this happen?
HMRC have announced that from 2019 businesses that are over the VAT threshold will be required to keep digital records for VAT purposes. Other businesses will be required to keep digital records and update HMRC quarterly from 2020.
Don’t panic, we are here to help!
Moving to a digital software package will mean a lot of extra work for many. We are trained in Quickbooks and Xero and can set you up, train you or even take over your bookkeeping for you. We can provide the software at a discounted rate and will be with you every step of the way.