Changes to Making Tax Digital are coming

Last week the Government rolled out the next steps for Making Tax Digital (MTD), in their bid to develop a tax system which is 21st century-ready.

What is MTD?

Making Tax Digital came into play back in April 2019, with the aim of bolstering productivity and making it easier to spot cases of fraud. As of April last year, businesses above the £85,000 VAT threshold, have had to keep digital records and submit their VAT returns on an MTD compatible platform, such as Xero or Sage.

What are the changes?

The Government has now announced that MTD will also include all VAT registered businesses as of April 2022 and will extend to those who submit self-assessment tax returns for property/business income (over £10,000) as of April 2023. These changes might seem far off from now, but there’s no time like the present. Getting caught out further down the line will only result in penalties, and in the meantime the advantages that online accounting has to offer are far-reaching.

Benefits for the business owner

For business owners, moving to the digital sphere can give them the opportunity to operate in a more timely and accurate manner. With real time information at their fingertips, owner managers can make strategic decisions and manage their cashflow on the go. Moreover, there is a whole range of cloud accounting tools on offer, all of which are easy to use and tailored toward the end user.

How can we help?

Moving into the digital world can seem like a daunting and confusing task, but we’re here to support you every step of the way, whether it’s training you and your team up on the ins and outs of the software, or looking after your whole finance function. Our cloud accounting experts work with a variety of different software systems, meaning that we can recommend that best system for you and your business. Get in touch to see how we can help with your online accounting systems.