The government’s Making Tax Digital initiative aims to implement one of the world’s leading tax systems in the United Kingdom. In future, almost all businesses and sole traders will be required to submit quarterly electronic accounts, known as MTD returns.
Companies will have to keep their business records digitally. Those who already use software to keep business records will need to ensure it is MTD-compatible. Businesses who currently don’t use software will need to alter their tax system to comply with the new requirements.
From 1st April 2020, any data that flows between the business and HMRC must do so through the MTD service. All data must be exchanged digitally from that date, which means all company records should be kept in a compatible digital format, such as a spreadsheet which can be a component of the digital records, or summary records from the spreadsheet.
All businesses must sign up for the service. You have until 1st April 2020 to sign up voluntarily. After this date, you’ll be required to do so by law.
DL Accounts will prepare and submit your quarterly MTD returns on your behalf. As MTD experts, we’re here to ensure the returns are completed accurately and on time, so that you’re free to continue the important job of running your company.