by Mel Hackney.

The prospect of Making Tax Digital (MTD) for businesses can be a scary one. There is much in the news about the administrative burden that this could become on sole traders, companies and landlords alike.

So what exactly is MTD for businesses, and where are we with progress?

To put it simply, MTD for businesses is a project which HMRC are undertaking to ensure that (eventually) all businesses keep digital records rather than paper.

At this stage of the process HMRC are focusing on VAT registered business.  From April 2019 all VAT registered businesses with turnover above the VAT threshold will be required to maintain digital accounting records. Maintaining paper records will no longer meet the legal requirements in tax legislation

Businesses and organisations will be required to use a functional compatible software product to submit their returns to HMRC. The software will use HMRC’s API (Application Program Interfaces) platform to submit information to HMRC. The current HMRC online tax return services will be withdrawn for those within the scope of the MTD rules.

Here at Frost Wiltshire we have ensured that those of our clients to whom this is relevant are keeping records which will comply with this new legislation. This has been done largely ‘behind the scenes’, so for the vast majority of our clients the only impact that they have seen has been to receive an email from us letting them know everything is in hand.

If you know you aren’t yet compliant and would like some help, or are concerned about the changes and would just like more information, please get in touch.