Making Tax Digital – Are you Ready?

EditorM2M, Making Tax Digital

 

Making Tax Digital (MTD) is HMRC’s move to digitise tax, and up to 89% of UK business will change the way they process tax as a direct result.

As of April 2019, businesses with a turnover above £85k will have to submit VAT returns through the HM Revenue and Customs (HMRC) gateway using commercial accounting software.

This is one part of a vital journey the UK needs to take to tackle low productivity and improve the business environment for SMEs.

What Does MTD Mean for Businesses Like yours

Making Tax Digital will change the way your business pays its taxes to HMRC. For businesses with a turnover above £85,000, MTD is less than one year away. If that includes you, you will need to purchase or update your commercial accounting software to an MTD-ready version before April 2019.

Why is Making Tax Digital Happening?

HMRC loses £9 billion each year on taxation errors, and they believe that’s partly due to the way businesses declare their income, therefore digital record keeping and automated VAT submissions will make the process easier and error-free.

What Should you Do to Prepare?

If you’re a VAT Registered business which has a taxable turnover above the VAT registration threshold of £85,000, it’ll be mandatory for you to keep your records digitally and send your VAT returns using MTD compatible software from April 2019.

Part of improving VAT means you’ll need to record your transactions throughout your VAT period and send HMRC an automated nine box VAT return at the end of each period, directly from your software.

It’s a simpler, more efficient process that will be less disruptive to your business in the long run.

The Solution? Sage Software

Sage software can help you get ready for the April 2019 MTD deadline. With a long history of working with British businesses and accountants, Sage is a trusted and reliable tool for various businesses all over the UK.

Here are some of the ways Sage software can support you through the MTD transition;

  • Compatible Software

With Sage MTD compatible software, you can:

a) Record and preserve electronic records in an electronic form;

b) Provide to HMRC information and returns from the electronic records in an electronic form and by using the Application Programme Interface (API) platform; and

c) Receive information from HMRC

  • HMRC Trusted

Sage has been working with HMRC on MTD for years to ensure their Accounting products are leading the way in compliance.

  • 100% Compliant

Sage market-leading software will mean you can submit your VAT return with confidence, in line with MTD legislation.

  • World-Class Support

With the help of a vast amount of digital content, such as expert led webinars, live events, web chat and telephone support, not to mention bespoke services designed to support your business including 1-2-1 training and onsite support, you can feel at ease knowing your business will get the help it needs.

  • Pioneering Technology

Sage has been helping with VAT for years so it’s important you understand that you won’t get left behind. With Sage technology, you can also make sure the changes will feel as small as possible.

Sage Business Cloud offers solutions for businesses of all sizes, providing software that grows as your business does, and meeting your needs every step of the way.

Need Help with MTD? Contact M2M…

For businesses needing to use digital software for the first time, or for those looking to invest in MTD compatible software, M2M can help.

Using Making Tax Digital compatible software, you can store and submit your digital records securely and keep track of everything you owe, making it easy for your business to meet the MTD requirements.

For further information about the benefits MTD complaint software can bring, such as saving your business time, decreasing admin levels and preventing late filing and errors, contact M2M today.