Making Tax Digital is the most significant change to the UK tax system in recent times, implementing the government’s ambition to make HMRC one of the most digitally advanced tax administrations in the world.
Since MTD was first announced in 2015, organisations across the country have been preparing to ensure they are ready to fulfil the new obligations when the time comes. These obligations and timeframes have moved over the past few years, but as we turned into 2019, MTD is now very much a reality that is merely months away for a large proportion of businesses in the UK.
Are you and your adviser ready for MTD ?
A lack of communication regarding MTD has meant many accountancy firms have been reluctant to provide concrete advice on how businesses should prepare for MTD. Software companies have sat on the fence as to which of their products would be compliant come the 1st April 2019.
This has led to many businesses being unaware of exactly what their requirements will be regarding VAT reporting as Making Tax Digital takes affect.
MTD for VAT
From April 2019, businesses with a taxable income of £85,000 or higher will be required to keep VAT records digitally using MTD approved software.
You can find a list of compatible software from HMRC’s own website
If you are unsure whether your current accounting software will be compatible, just contact one of the team at Ward Goodman and we can walk you through the process.
How Are Ward Goodman Preparing for MTD ?
At Ward Goodman, we have been talking about Making Tax Digital for a number of years now. We have already implemented a number of processes and procedures to ensure that not only are we compliant ourselves, but that all our clients are aware of the requirements when digital reporting kicks in from April 2019.
WG Cloud – This is our way of offering accountancy services to clients utilising cloud software. By making processing more efficient, cloud software allows us to give you advice on a more regular basis which can add value to your business. Businesses may be MTD compliant using non-cloud accounting software, but for many there will be a requirement to upgrade software and therefore this is the perfect opportunity for that business to consider the additional benefits that come from a cloud based accounting solution.
Software – Businesses and accountants will need to ensure that their accounting software is compatible with the new MTD requirements. Ward Goodman have implemented a process of ensuring all clients are using software that is compatible with the new MTD system and has been approved by HMRC. We have provided numerous free seminars that have been attended by hundreds of local businesses, so that they can learn about the requirements and timelines.
Staff Knowledge – With the introduction of our dedicated WG Cloud team, we have been able to focus on ensuring all staff are equipped with the latest updates regarding the MTD roll out, meaning we can always provide advice on the most recent guidelines, and trust us, they have moved about a bit over the past few years.