Making Tax Digital
Our refreshingly simple bookkeeping software is fully prepared for Making Tax Digital, helping to ease the transition for all small businesses, accountants and bookkeepers in the UK.
What is Making Tax Digital?
Making Tax Digital (MTD) is an initiative created by HMRC to create a simpler, more effective and efficient tax system, aiming to reduce the number of penalties occurred by businesses submitting incorrect figures.
MTD will change the way businesses submit their returns, instead of the annual tax return, businesses will have to submit their figures every quarter using online accounting software. This will not mean submitting four tax returns per year. Instead, businesses will be regularly managing their bookkeeping and will simply need to check the information HMRC are receiving is correct.
What is Making Tax Digital for VAT?
MTD for VAT is just the first round of changes in the MTD initiative.
For now, it means that from 1st April 2019 onwards any VAT registered businesses, with a turnover over £85,000 per year, will have to keep digital bookkeeping records and submit their VAT returns online using HMRC recognised software, like Pandle.
When is all this happening?
Check out our MTD timeline to see when these changes will affect you.
April 2020 (at the earliest)
Corporation and Income Tax
MTD for VAT pilot begins