MTD (Making Tax Digital) for businesses.


First publication on April 10, 2017

Making Tax Digital is a key part of the UK's government plans to digitize the taxes. And the first step was the VAT.

From April 2019, VAT-registered businesses with a taxable turnover above the VAT threshold, are now required to use the Making Tax Digital service. It means that the business must keep all the records digitally and submit the VAT return through a compatible commercial software.

Even if your business is registered for VAT, you have to separately register for MTD.

THE STEPS

  1. Check if you have to join

  2. Get the right software (or accountant)

  3. Sign up for Making Tax Digital for VAT

  4. Authorise your software

Check out our brief info graphic to see if you need to register for MTD or not.

IMPORTANT: Sign up for Making Tax Digital for VAT at least 72 hours before your VAT Return is due, or 7 days before if you pay by direct debit.

WHAT TO ANTICIPATE NEXT

From April 2020 - MTD for income tax and National Insurance contribution (NICs) purposes if your turnover is over the VAT threshold.

From April 2020 - MTD for income tax and NICs purposes if your turnover is below the VAT threshold.

From April 2020 - MTD for Corporation Tax (CT) purposes for everyone who pays CT.

Businesses, self-employed people and landlords with turnovers under £10,000 are exempt from these requirements.

Charities will also be exempt from the MTD for Business obligations, whether they are VAT registered or not.

Talk to your accountant for more details or Arrange an SCS (Skype Consultancy Service) service with us to learn more.

For more on Making Tax Digital visit GOV.UK

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ATTENTION! This article intends to give only a general informative picture and should not, in any case, be taken as a rule. It is strongly recommended to seek a full and professional guidance specifically for your circumstances before making any decisions.

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