What is MTD?
MTD is a government initiative to modernise HMRC’s tax system, with the aim of making the whole process of administrating tax simpler and more efficient.
All of your tax information will be in one place (your digital account) and you will be able to pay tax based on your business activity during the year, uploading and updating your tax account in real time.
Am I affected?
If you own a business, or are self-employed and you pay income tax, national insurance, VAT or corporation tax then it is quite likely you will be affected. This means you could be required to keep track of your tax affairs digitally and update HMRC quarterly instead of annually.
From the 1st April 2019, all UK businesses that are VAT registered & above the £85,000 threshold will have to keep digital records. At Gold Stag Accounts, we use and recommend a variety of trusted MTD-compatible software providers including, Xero, Quickbooks & FreeAgent. We can advise which system will work best for you.
Other areas of MTD, such as Income tax and Corporation tax, have been put on hold until 2020 at the earliest, but we do advise that freelancers & businesses be prepared for Making Tax Digital and make the switch as soon as possible.
The benefits of Making Tax Digital
• Know where you stand – with a full picture of your business’s tax affairs in your digital account.
• Save time – by having access to all your business’s tax info in a single place.
• Save hassle – by managing all your business tax affairs online.
• Plan and budget more effectively – with a real-time calculation of how much tax you owe.
More information is available at gov.uk/personal-tax-account
Our Making Tax Digital Partners
We are partnered with Quickbooks, Xero & FreeAgent, the UK’s leading MTD compliant software providers.
Choosing your accounting software can be a difficult decision. As we are not tied to just one partner, our clients can have peace of mind knowing that we can advise them on the best software for them and their business.
To find out more about our partners please, read below.
Xero is the UK’s leading online accounting platform and has been named Britain’s Best Small Business Accounting Software by Accountancy Age.
The team at Xero have been busy building their MTD functionality and are working closely with HMRC to have it ready in time for April 2019. Once the functionality is ready, Gold Stag Accounts will work with Xero to ensure we’re well-equipped to support you with your MTD compliance.
The world’s #1 online accounting software.
For most businesses, QuickBooks is an all in one Making Tax Digital software solution without the need for digital links. QuickBooks can be used as bridging software to submit your VAT return data that has been prepared elsewhere
Voted the UK’s #1 accounting software for small businesses!
FreeAgent is ready for MTD as it has been submitting digital VAT returns to HMRC on behalf of customers since 2010. They are proud to be participating in the MTD pilot programme & their software is on HMRC’s list of compatible suppliers for MTD for VAT.
Sign up for news, offers and free advice
Did you know?
WAGES PAID TO FAMILY MEMBERS: To reduce profits, consider employing members of your family who are not currently employed. They can use their unused personal allowance to cover the wages that you pay them. You can claim their wages against your profits. You must, pay them a competitive market rate for their services and only pay for the hours that they work for you. National Minimum Wage rules also need to be applied.
- My Tweets