What does Making Tax Digital mean for businesses?
If you are VAT registered then you will need to move to digital record keeping (i.e. use software to record all your VAT invoices and receipts). If you are not VAT registered then digital record keeping is optional. However, these business owners can gain updated income tax estimates whenever they want, which will help with cash flow forecasting.
If you are VAT registered and do not yet use software to record your VAT information (invoices to customers and from suppliers) you need to start planning for MTD. The implementation date is April 2019.
Businesses will be asked to keep digital records, or to update HMRC quarterly, for other taxes from 2020.
Making Tax Digital will be available on a voluntary basis for the smallest businesses, and for other taxes.
This means that businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new digital system.
As VAT already requires quarterly returns, no business will need to provide information to HMRC more regularly during this initial phase than they do now.
All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.
Lakers are committed to helping small businesses adapt their technology to ensure that the transition to the new digital tax system is a smooth one. We will support our customers every step of the way and continue to work closely with HMRC to help clarify exactly what Making Tax Digital means for you and your business.
Expenses & Invoices
We would introduce you to an app for your smartphone. Perfect for cash-based businesses – add income and expenses, create sales invoices and get insight on how you’re doing. View your business performance any time right there in the palm of your hand.
Business Cloud Accounting
Everything you need to take care of business. With easy invoicing, automatic bank feeds, reports and insight, and the ability to calculate and submit VAT returns direct to HMRC. Free yourself from admin with bespoke Business Cloud online accounting.
To help stay informed, you can contact us to find out how we can help you and your business stay on top of any developments.