Making Tax Digital

Welcome to our Making Tax Digital page, where you’ll find the latest information, analysis and practical guidance on what Making Tax Digital will mean for you.

Making Tax Digital is the Government’s plan to modernise and digitalise the UK tax system. Ultimately, this will have significant implications for both businesses and individuals.

What is Making Tax Digital?

MTD for individuals: the Personal Tax Account                                                                                   

Digital tax accounts for individuals – Personal Tax Accounts (PTAs) – have already been created by HMRC. The accounts are pre-populated with information already held by HMRC. PTAs are set to be developed further and taxpayers will be able to report any additional sources of income through their digital account.

Individuals may wish to register for a personal tax account by visiting www.gov.uk/personal-tax-account.

MTD for businesses: the revised timescales

The new MTD initiative was originally set to be implemented between 2018 and 2020. However, in response to concerns raised by business and industry experts regarding the pace and scale of the changes, the government put forward a revised timescale for the introduction of Making Tax Digital for Business (MTD).

Under the revised timetable, starting from 1 April 2019 those businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software. The MTD requirement will remain even if turnover subsequently falls below the VAT threshold.

The government has confirmed that keeping digital records and making quarterly updates will not be made mandatory for taxes other than VAT before April 2020. Similarly, those businesses below the VAT threshold which have voluntarily registered for VAT can opt to join MTD. HMRC is live piloting MTD for VAT from April 2018.

› Download our free guide on all you need to know about Making Tax Digital 2018-19

How can Ward Williams help you?

We have become increasingly aware that some software providers are charging significant additional fees for the provision of API enabled software.

There is no need for you to worry about upgrading/changing your existing software to API enabled software.  Whatever format your VAT records are maintained in, Ward Williams will be able to prepare/submit your VAT returns on your behalf.

Ward Williams works with the below HMRC approved software providers for MTD for VAT.

Xero           

Please contact us to discuss your individual needs and specific advice on how we will be able to help you on enquiries@wardwilliams.co.uk or call 01932 830664.

Specialists

Andrew Webb
Business Services Director
andrew.webb@wardwilliams.co.uk