Making Tax Digital (MTD) is an HMRC initiative designed to digitise the UK tax system to make sure it is effective, efficient and easier for taxpayers.

Making Tax Digital for business (MTDfb) begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns using compatible software.

Read more about HMRC approved MTD compatible software here.

For more information on MTDfV visit the HMRC Making Tax Digital for VAT information pages.

Other components of Making Tax Digital, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest.

For more information on MTD in general visit the HMRC Making Tax Digital Overview page.

Xero has created Dexter the Digital Tax Advisor to be the face of Making Tax Digital for VAT – the biggest change to tax in decades – after one in four SMB owners admit they have no knowledge that the legislation is coming. Dexter has been brought to life by illustrators Snowden and Fine to concentrate minds ahead of the shake-up, as the new HMRC legislation calls for all VAT-registered businesses above the £85k threshold in the UK to file their taxes digitally from April 2019.

 


 

Need Help Preparing for MTD?

Making Tax Digital is effective for VAT from April 2019

Whether you’re already using accounting software or still using manual accounting methods, Starbooks Ltd have the expertise to assist your business in its preparations for Making Tax Digital compliance.

CONTACT US FOR MORE INFORMATION