Making Tax Digital
HMRC are changing the tax system for self-employed people and businesses in line with the ever-evolving digital world and financial system that we all live an operate in today.
With digital banking becoming the norm for most of us, the way we do business receiving and paying for transactions has greatly changed.
HMRC are aiming for ‘Real-time’ information from people which will ensure that the tax they pay is accurate and to date. This will require the streamlining of book-keeping systems in line with digital sources of data existing and being available to UK businesses.
The new system is to be gradually introduced for the self-employed and businesses in the UK starting with Making Tax Digital -' MTD VAT’, whose new digital requirements have started from 1st April 2019.
This means that all UK businesses registered for VAT, and with a turnover over the VAT threshold must agree and abide to the new digital record-keeping rules that HMRC have introduced.
There are a number of ways in which a business can do this, and many software products and solutions are available.
The solution which suits you and your business will differ greatly depending on the many individual characteristics which exist within you and your organisation.
Businesses which already hold digital record-keeping procedures shall have to review their existing systems to ensure they comply with the new changes introduced by HMRC Making Tax Digital.
This should be seen as a time to take advantage of systems overhaul that assist in a more useful flow of information through the business to aid management decisions, all in line with the new tax system that is being introduced to the UK.
At J.A.McNicholl & Company we can help you understand the changes your business will face with regards digital record-keeping. We can assess your business and help to put you in line with the best solutions, keeping you to date with the changing HMRC requirements.
The changes projected ahead are great, but they shall only be problematic if not managed properly.