Making Tax Digital Is Here

As Making Tax Digital is now in full swing, eligible businesses are now required to file their tax returns online.

Is my business required to do this?

MTD applies to all VAT registered businesses with turnover over the VAT registration limit (currently £85,000).

MTD is also optional if you are voluntarily registered and your turnover is below the limit.

What software do I need?

There are various options for achieving compliance:

• Using cloud software, such as Xero. If you are using other software make sure you are up to date as only latest versions are likely to be compliant

• Using HMRC bridging software for spreadsheets to link them to the system digitally

• Using bespoke software, again with digital links in place between the different systems

You can also use a combination of the above. The key point is that the systems must be digitally linked.

I don’t know how to use this software – what if I make a mistake?

HMRC have put a soft landing period of one year in place, giving businesses time to achieve compliance.

More information

Our Making Tax Digital factsheet contains more detail about the key points you need to know. We also have a separate section on our website with all you need to know.

We are here for you to provide as much help as you need in getting your business compliant with Making Tax Digital. Please contact us to discuss your current systems and to find out more about what you need to do.