Making Tax Digital
Making Tax Digital for Income Tax Self Assessment.
Making Tax Digital (MTD) is an initiative from HMRC to digitise the tax system for businesses and individuals
The new system covers Corporation tax, VAT and Income Tax Self Assessment. To implement MTD, businesses and individuals need to use MTD compatible software systems to store financial information and correctly submit it to HMRC when needed.
We provide all the necessary accountancy services whilst ensuring your compliance obligations are met in good time.
What are the benefits of MTD?
Decreased reliance on paperwork
By using a MTD compatible software system, all of the financial information you need will be at your fingertips! This saves you time and hassle on having to look through stacks of paperwork that clutter up your desk.
More efficient processes
Speaking of time saving, MTD means that filing taxes will become a much easier process. For this reason, businesses can increase their productivity by spending more time focusing on their clients and improving their products or services.
Reduced risk of errors
Filing tax has been a dread inducing exercise for some in the past as it is a complex task and filing them late can result in fines. Luckily MTD eases the pressure because it becomes so much easier to file tax returns correctly the first time and on time!
How we can help
Although MTD will make filing taxes much easier, it will not undermine the value that an accountant can provide in terms of sound advice and expertise when it comes to taxes.
In fact, accountants are the professionals who are leading the way when it comes to MTD. They are staying at the cutting edge of new developments to the scheme so that they can advise their clients on how to properly implement MTD best practices.
At Surge Accounting, we help our clients with MTD by advising on software systems that they can use and by providing them with guidance on how to be compliant with the new tax system.
Important deadlines
As MTD covers multiple types of taxes and is going to impact on millions of people, it is being implemented in steps.
Here are the dates you need to be aware of:
April 2022:All VAT registered businesses first needed to be following MTD rules.
April 2026MTD for Income Tax Self Assessment (MTD for ITSA) rules will apply to landlords and sole traders earning over £50,000.
April 2027MTD for ISA rules will apply to sole traders and landlords earning over £30,000.
Do you need help with Making Tax Digital?
If you are not sure if you need to implement MTD you can get in touch with us for more advice. You can also speak to us if you need guidance on implementing MTD and ensuring you are following the rules properly.
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