Key elements of Making Tax Digital, and what’s ahead.
Making Tax Digital (MTD), HMRC’s flagship project that’s designed to digitise the UK’s tax system.
Businesses and individuals will be required to start using the new digital service from:
- April 2018 – for individuals who file self-assessment tax returns.
- April 2019 – for VAT purposes for everybody who is VAT-registered.
- April 2020 – for Corporation Tax (CT) purposes for everybody who pays CT.
- Vat pilot scheme is starting from April 2018 for MTD. Businesses keen to take part in the live pilot are urged to contact HMRC via firstname.lastname@example.org.
- After MTD is live VAT submission can only be possible through MTD compatible accounting software i.e It will not be possible to use HMRC vat portal to submit VAT returns
- Once a year tax returns will eventually come to end and quarterly summary financial affairs will be submitted instead with final adjustments to last quarter submission. It will be crucial to keep books and record pretty much up to date, late submission of MTD will be subject to point base penalty system.
- There are lot of webinars available for more information, here is the link for upcoming and recorded MTD webinars
- Here is link for more information on MTD