MTD – Making Tax Digital

HMRC are planning radical changes to record keeping and reporting, which will impact on the majority of individuals and businesses. It’s under the umbrella of Making Tax Digital.

It’s part of a bigger process to modernise tax collection and utilise information  from various sources, including your bank. Undoubtedly it’s the start of a process to move towards “real time” tax collection… Making Tax Digital ( MTD ) places a higher burden on the taxpayer in terms of administration and maintaining proper books and records. Essentially, most tax-payers will be required to keep records digitally, in specified formats, and will be required to submit digital reports to HMRC every quarter. You will also need to submit a summary report each year, as now.

Rest assured – we are actively getting ready for this, and to help you, whenever it happens.

These requirements will fundamentally change how you report to HMRC, and will require some major changes to how we operate for you. It’s definitely the end of “shoebox accounting”, and at worst, it’ll be like doing a tax return five times a year.

On our part we think it’s going to require a fair investment in new software, which we are assessing now, and changing some processes to manage this quarterly reporting requirement.

We are planning to keep you updated as soon as we get further information regarding these changes, but if we can help in the meantime, please get in touch.