HMRC’s vision to digitalise the UK tax system is now well underway. Be prepared for digital tax with Brown Butler.
The Making Tax Digital process started in April 2019. VAT registered businesses with a turnover exceeding the VAT threshold (currently £85,000) now being required to use HMRC-compliant software to maintain their VAT records and send and file their VAT information to HMRC.
We submitted the first MTD VAT Return, on behalf of a client, before the end of May 2019. In the months since the introduction of MTD for VAT we have filed over 100 VAT returns on behalf of clients and assisted many more clients to file their own.
Get ready for the age of digital tax with Brown Butler. We are working with our clients to provide a cost-effective cloud accounting solution, designed specifically for their business. With the help of our highly qualified Chartered Accountants, we also train businesses to use the latest cloud accounting software ready to file their digital returns.
Making Tax Digital with Brown Butler
- Be fully compliant
- File and prepare accounts from any digital device, anywhere in the world
- Collaborate with your Brown Butler accountant remotely with cloud technology
- Full training and support available
- Reap the benefits of cloud accounting, including automated stock control, payroll, invoice generation and heaps more.
What’s next for MTD?
Originally, other forms of taxation, such as Income Tax and Corporation Tax, were meant to follow on from the requirements for VAT April 2020 at the earliest.
However, following the 2019 Spring Statement, the Government issued a Written Ministerial Statement, which confirmed that MTD for other forms of tax would be delayed until April 2021 at the earliest.
In relation to Corporation Tax, not much has been revealed yet by the Government, but it is expected to be introduced alongside or shortly after Income Tax reporting for MTD in 2021.
This new process requires a far larger number of businesses, including those below the VAT threshold, to report their affairs digitally on a quarterly basis. This includes sole traders with income from one or more business, as well as income from letting UK property.
HMRC is currently in the process of testing and releasing information on software and the options for Income Tax.
Nevertheless, businesses do need to be prepared for the gradual implementation of the new digital tax regime.
Many of our clients are already using computer-based accounting packages such as Quickbooks, Xero or Sage. These packages will not only future-proof your business in readiness for each new Making Tax Digital requirement in the coming years, they also enable you to share financial information in real time with our team and quickly produce bills and invoices.
Contact us today to find out how we can save your business time and money.