Making tax digital – Tax is changing!
The biggest change to the administration of tax since the first half of the last centenary is fast approaching.
In 2015, HM Revenue & Customs (HMRC) released a ‘Making Tax Digital’ (MTD) paper which proposed fundamental changes to the tax system and confirmed its intentions to transfer to a fully digital tax system and work towards digital tax accounts for all by 2020.
As part of our continued commitment to providing expert support to you and your business, here’s our latest update on what we know so far following the Spring Budget 2017, and what we’re doing to help you here at Naylor Wintersgill:
MTD means you’ll be required to change the way you keep your accounting records and report your income to HMRC. The self-assessment Tax Return, as we know it, will cease.
You’ll be required to:
• Update HMRC every quarter of income and expenditure
• Use digital software to keep records of income and expenditure
• If you’re a self-employed taxpayer, consider the use of a voluntary “Pay as you go” system based on the data filed with HMRC under MTD
Who’ll be affected?
It will affect most businesses and individuals who are taxpayers in the UK.
When will you be affected?
The current proposed start dates to comply with the requirements for MTD are:
6th April 2018
Self-employed and landlords with turnover over the VAT registration threshold
6th April 2019
Self-employed and landlords with turnover over £10,000 (this amount is still to be confirmed) and less than the VAT registration threshold
6th April 2019
Everyone who is VAT registered
6 April 2020
Everyone who pays Corporation Tax
Our experienced team are here to support you
Here at Naylor Wintersgill, it’s all about you.
We’ve put in place a dedicated in-house team who are working hard to ensure all our clients experience a smooth transition to complying with the requirements of MTD.
If you’re thinking about purchasing or upgrading your existing accounting package in the near future, we can help you to select the software solution that’s right for you. We can also check that the package you’re currently using is MTD compatible as it will need to be part of/integrate with your system used to keep the day to day financial records of your business.
What we’re doing right now
We’ve identified our clients who’ll be first affected by MTD in April 2018 and if that’s you, you’ll be hearing from a member of team directly very soon to help you prepare for the changes ahead - rest assured, we’re on the case!
Whenever you’re due to comply with the upcoming changes, we’ll stay in regular contact with you to provide further details, in particular regarding your record keeping requirements.
Don’t worry – our expert team will fully support you during the MTD process and will make sure you are, and stay, compliant.
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