Managing your tax affairs effectively is essential in the digital age, regardless of whether you’re an SME, a single-director limited company or a sole trader. Making Tax Digital for VAT is coming on 1st April, and you need to be prepared.
The government is working to make the UK tax system more streamlined and effective for taxpayers. Making Tax Digital is one piece of this puzzle. Fully digitising the UK tax system should make it easier for taxpayers and business to correctly manage their taxes.
From 1st April, Making Tax Digital for VAT will be rolled out for VAT-registered businesses that are above the annual VAT-taxable turnover threshold of £85,000. This includes contractors with their own limited company.
These businesses will be required to keep their tax records digitally and use software to submit all their VAT returns from 1st April. While this may be the norm for many businesses, others will need to adapt and get to grips with using MTD-friendly software by this date.
- Effectiveness – businesses already file VAT Returns quarterly. Getting to grips with recording and reporting entirely in digital format in a one-stop shop streamlines this process
- Efficiency – reporting and filing VAT returns will be faster overall for all involved, and you won’t have to rely on a backlogged HMRC server to manage your tax affairs. You can do it from any MTD-compatible software or accountancy service.
- Accuracy – a streamlined process means minimal opportunity for errors; MTD should make it even easier for VAT-registered businesses to manage their taxes
VAT-registered businesses are already poised for Making Tax Digital for VAT, as they are already required to submit quarterly VAT returns online.
Discover your accountancy options ahead of Making Tax Digital for VAT.
We’re committed to supporting contractors and their businesses. Learn more about Churchill Knight’s accountancy service, which is already equipped to handle Making Tax Digital for VAT. Call us on 01707 871610 or complete the form below to find out more.
You need to have MTD-compatible accountancy software in place before 1st April 2019; alternatively you can appoint an accountant whose built-in software is compatible.
There is information available to you should you wish to learn the ropes of MTD on your own. Otherwise, an accountant can provide you with the information, tools and support needed for quarterly VAT reporting under Making Tax Digital.
From 1st April 2020, all businesses in the UK will be mandated to keep digital records and provide quarterly updates on Income Tax and Corporation Tax in addition to VAT (if applicable).
Churchill Knight is committed to supporting contractors and their businesses in transitioning to Making Tax Digital for VAT.
Our accountancy software is already equipped to handle all clients’ ongoing VAT reporting, ensuring your tax affairs are kept totally up to date in line with MTD legislation.
Contact us to discuss your accountancy options.