What Does Making Tax Digital Mean For Your Business?

It doesn’t matter on the type of business that you have or the specific industry that you work in; it’s time to start thinking about making your tax digital. The government has recently launched the Making Tax Digital initiative and set to make digital tax a lot simpler for many businesses. The MTD initiative aims to help organisations manage their taxes efficiently and effectively. Furthermore, it enables them to keep on top of their other financial business affairs.

How Will Making Tax Digital Affect Your Business?

HMRC has been taking steps towards becoming one of the most advanced tax departments in the world. MTD is a big part of that. It doesn’t matter on the size of the business or what you do. MTD is transforming the way that things are done from start to finish. The goal is to make tax administration more effective, more efficient and a lot more straightforward. The hope is that that MTD will make it easier to stay on top of business finances, as well as calculate accurate taxes.

If wanting to benefit from MTD, businesses will need to make some changes. From their first VAT period starting after 1st April 2019, any company registered for VAT with a taxable turnover above the £85,000 registration threshold will need to keep VAT records digitally. They will also need to file their VAT returns using software that is compatible with MTD. Businesses with a taxable turnover below the VAT threshold do not need to implement MTD. However, they can do so should they want to.

Accountants in Birmingham

With fundamental changes to the way that tax is processed, it’s easy to see why some businesses may be hesitant. If you have been doing your taxes a certain way for a long time and find that it’s been working well, embracing the MTD initiative could seem like a daunting and stressful task. However, it doesn’t need to be. Thanks to our accountants in Birmingham, the transition can run smoothly and be completed in no time at all. You will probably find that implementing MTD is a lot simpler than you first thought. There is no need to stress, however, with our team of experts on hand to help. To find out more about switching to MTD, and how it will affect your business, get in touch with the Engage Accountancy team.