MAKING TAX DIGITAL FOR BUSINESS
Making tax digital was first introduced in April 2019 and is now in place for many types of company and business above certain turnover thresholds. However, one of the biggest changes is coming soon as HMRC intend to include many of the smaller organisations. From 6 April 2026 MTD will apply to all businesses and landlords who have turnover greater than £50kpa. Then, from 6 April 2027 it will apply to all businesses and landlords with a turnover greater than £30k. This is a massive change for the sole trader/rental property owner.
We can offer:
1. To set you up with an appropriate accounting package and teach you how to use it.
Or
2. Set up a system so that you give us your records on a quarterly basis and we put the records into a digital format that comply with the regulations. It might not be as complicated and expensive as you think.
MTD in a nutshell
- Accounting Software – In order to submit your return post the above dates, the software must have the capability of communicating directly to HMRC’s interfacing platform (Application Programming Interface, or in short API).
- Digital Record Keeping – You will have to keep and preserve certain records and accounts. In practical terms, if a hard copy invoice is received and manually typed into the accounting software, the original copy must be kept. Hard copy invoices that are scanned in full and the full image is held on the accounting software, the hard copy invoice does not need to be kept.
- Digital Links & Excel – Bridging software can be acquired to link spreadsheets.
