Making Tax Digital (MTD) is a government initiative that will eventually move virtually all tax/NIC management and payment online. It will mandate digital record keeping for all entities and will require the use of compliant software.

The first stage of MTD will be enforceable from April 2019, from this date all VAT registered businesses with turnover in excess of £85,000 will need to use MTD compliant software to maintain and submit VAT returns.

The introduction of MTD for VAT will see the current submission portal close for businesses with turnover in excess of £85,000, and so they will need to submit their VAT returns directly from a digital accounting system.

With this being the UK's biggest tax shake-up in a generation there is no time to waste, here at Booth Ainsworth we have been trialling packages to ensure we make online accounting simple for you and effective for your business.

Our aim in the coming months is to focus on your requirements, it maybe that you are already compliant with MTD? Or you may need to implement a different system? Or you may want to outsource your bookkeeping? Whatever your current situation we will be able to advise and help you with the move forward with digital record keeping.

There are a few exemptions from MTD, prior to April 2019 - VAT registered businesses where turnover is below £85,000 also:

Charities and Community Amateur Sports Clubs (CASC)

HMRC will provide non-digital alternative channels for those considered digitally exempt. This includes those with protected characteristics under the Equality Act who fall into the 'digitally excluded' legislative definition and also;

  • Persons who cannot get online through reasons of disability, age remoteness or location or other reasons;
  • Persons who practice religious beliefs that are incompatible with the use of electronic communications.

This blog has been written by Sally Wood, Head of Business Services and MTD Specialist. Contact Sally on 0161 475 1505 or email Sally.