We have had a few questions lately about the upcoming Making Tax Digital initiative laid out by the government, and whether Pandle will be able to support it.
What is Making Tax Digital?
Making Tax Digital (MTD) is a government initiative that will change the way that businesses file their tax returns. It will mean the end of the annual tax return, which will be replaced with quarterly submissions.
Individuals and businesses will be able to log into a personalised digital tax account where they can clearly view how much tax is owed. It aims to make the process easier for people to keep on top of their tax affairs.
Businesses are not expected to use MTD until April 2019. From then on, those who are VAT registered will have to meet their MTD obligations when they file returns.
This will only apply to businesses who have a turnover above the VAT threshold (£85,000 per annum).
At the moment, smaller businesses are not expected to use the new system, although are advised to anyway as it can make things easier.
Do we support it?
We would like to reassure those who are worried about MTD, as Pandle will soon be ready to support the new system.
Our development team is currently hard at work developing Pandle for MTD and we expect this work to be completed in the coming months. We’ll be up and running well before the deadline of April 2019 so there’s no need to worry about not being ready in time.
You’ll soon be able to submit a MTD return at the same time as you submit your VAT returns to HMRC to ensure they have all the information they require from you.
Once we’re up and running, you will be able to find us on this government approved list of software providers who can support MTD.
We hope this clears things up but if you have any more questions about Pandle or MTD, please get in touch via email@example.com.