Page 8 - Pinnacle IN THE MIDLANDS Newsletter

Making Tax Digital - What is

it?

Making Tax Digital (MTD) is HMRC’s move to What can you do to get your business
digitise tax. ready for MTD?
MTD means that as of 1st April 2019, HMRC
require you to submit VAT If you are VAT registered, then you will need

returns using accounting software, and you’ll to move to digital record keeping (i.e. use
no longer be able to submit manually through software to record all your VAT invoices and
the HMRC gateway. receipts).

MTD will eventually cover all tax and is being If you are not VAT registered, then digital
rolled out in stages. The first stage affects record keeping is optional. However, these
those above the VAT threshold of £85,000. business owners can gain updated income tax
estimates whenever they want, which will help

What does this mean for you? with cash flow forecasting.

Digitising tax is a good thing. You’ll no longer

have to provide the same details twice and
you’ll get a real-time view of your tax, so
you’re not taken by surprise when bills come
in – making everything simpler by having
everything in the one place.

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