Why Businesses Who Think They Are Compliant With MTD Need To Think Again
The biggest confusion around Making Tax Digital (MTD) is the belief that businesses who submit taxes through the existing Government Gateway system are classified as MTD compliant. However, MTD compliance is more than submitting taxes ‘online’. From April 1, HMRC will require all VAT-registered businesses to keep digital records and send returns using MTD-compatible software – through the use of cloud accounting or bridging software capable of securely sending and receiving data from the HMRC website with digital links.
Using Cloud software is proving to be a great advantage to small businesses as it gives them real time information about their businesses such as up to date profit and loss and cash flow reports which they may not have had access to previously. It can help small businesses gain an edge in competitive markets.
If you are unsure whether you are required to submit your VAT returns under the new Making Tax Digital rules then please get in touch and we can assist you in deciding which software best suits your business.
The content of this article is for general information only and does not constitute tax advice. It should not be relied upon and action which could affect your business should not be taken without appropriate professional advice.
Callum Somers ACCA
Growing up on a Dairy farm in East Devon, Callum joined Evolution ABS in 2010 and qualified as a Certified Chartered Accountant in 2015. Callum looks after a wide variety of clients, helping them meet their accountancy, payroll and tax needs.
Outside of work Callum is a very keen sportsman and particularly enjoys a game of golf or playing football for his local club.