Making tax digital: the basics
March, 11 2024
On 1st April 2019, HMRC will change the way in which many businesses have to report their VAT information. We’ll be seeing a change to make tax digital. Here at Quant, our bespoke software is fully MTD compliant, ensuring your business is well-prepared for the upcoming changes.
Which businesses are affected and what is the deadline for compliance?
HMRC will be introducing the new regime in 3 phases. The first phase, to be introduced in April 2019, sees any VAT registered business whose turnover exceeds the VAT threshold (currently this is a VAT-exclusive value of £85,000) having to comply with the new system.
The second phase, set for April 2020, sees any other businesses who are registered for VAT having to ensure their processes are MTD compliant.
Finally, after the successful implementation of MTD, the Government hope to announce that all trading businesses will report their financial transactions (for both self-assessment and Corporation Tax) under the MTD platform. This will happen sometime following the phase 2 implementation in April 2020.
What are the proposed changes?
The emergence of MTD means that the HMRC portal currently used to file VAT returns will close from April. Instead, businesses who fall under the rules for MTD must submit their VAT returns through compatible software and keep a digital record of their transactions for VAT.
Why have the Government decided to make these changes?
Through these changes, HMRC are of the belief that a digital UK tax system will place it amongst the most sophisticated in the world and that this benefit will be realised by individual and business taxpayers. These benefits could include:
- By reducing the manual entry of transactions the quality of information will improve
- Record keeping will become more robust when undertaken digitally
- You will be able to manage your business from anywhere when using a cloud-based platform
- By reducing the time spent on data-gathering and input you will have more time to focus on other key drivers of your business.
How can Quant help?
Quant’s bespoke MTD solution ensures your business is in safe hands when it comes to meeting your statutory obligations. Even better, when you subscribe to any of our packages, our software solution is included free of charge for as long as you are a subscriber.
Our skilled team can guide you through the process for MTD and ensure you are completely ready through our support packages, ranging from unlimited online support right through to us taking all the stress away and recording the transactions on your behalf. Our software allows us to keep digital copies of all of your invoices and piece together your digital accounts in one easy-to-manage location. All you have to do is sign up!
How do I get started with making my tax digital?
You can be ready to go in as little as 15 minutes. Simply fill in our online registration form here, or, if you’d like to speak to one of our team to find out more, complete our contact us form here. We can’t wait to hear from you!
