We’ve brought together some of the most frequently asked Making Tax Digital questions.
Can’t find an answer to your query, contact us.
What is Making Tax Digital?
Making Tax Digital is a government initiative to modernise HMRC’s tax system.
The goal is to make the whole process of administrating tax simpler.
How does Making Tax Digital work?
Tax returns will need to be submitted digitally via Making Tax Digital compliant software.
Making Tax Digital goes one step further, with all business transactions being recorded, digitally.
What accounting software is regarded as compliant?
Accounting software packages include QuickBooks, Xero, Kashflow and Sage.
Can I use Excel Spreadsheets or Paper Books?
No, the whole purpose of this is to make tax digital.
If you are using Excel Spreadsheets or Paper Books your business will need to invest in digital software.
If you are unsure if your method of recording your business accounts is covered, contact us.
Who is affected and when?
There are some exceptions.
However, all businesses will be affected by the new Making Tax Digital transition.
If you’re a VAT registered business you will need to start preparing for Making Tax Digital now.
Making Tax Digital roll out begins on the 1st April 2019.