Blog by Mark Newton of Newton & Co Accountants – March 2017
MAKING TAX DIGITAL “MTD “ – THE BIGGEST CHANGE IN UK TAX SINCE SELF ASSESMENT
SELF EMPLOYED AND BUSINESS PEOPLE PLEASE SIT UP AND LISTEN
This may be the first time you’ve seen or heard of these words, but it won’t be the last.
The government via HMRC are introducing MTD in 2018 and here are the key points so please take note as it will affect you.
Any business with a turnover above £10,000 will have to comply. This includes property letting.
The business/individual/partnership will have to complete their accounts on recognised digital computerised software. Gone are the carrier bags / shoe box/ fag packet and manual written journals.
The books and records will have to be submitted quarterly, yes quarterly, with a 30 day deadline, yes 30 days. That’s effectively 4 year ends in a year.
There will be penalties for none compliance. The government believe that it will benefit you having all of this extra work/cost and are taking virtually no notice of the warnings from the accountancy profession.
THAT’S A LOT TO TAKE IN SO WHAT CAN WE DO TO HELP
We will keep you up dated on MTD in the meantime. The roll out is due to start in 2018 for small business and the sole trader businesses with Companies following in 2019/20.
When it becomes clear what software is needed and when we can get access to it we will start to give you options and the relevant training. We will also offer to complete the digital work for our clients at a competitive rate.
We really must stress that this won’t go away and we will encourage you to comply.
If you wish to go computerised early please let us know as we are an official “Quickbooks” training office and can offer training and a selection of digital packages now.