Making Tax Digital

MAKING TAX DIGITAL


Tax is changing for businesses, accountants and bookkeepers, with the introduction of the Making Tax Digital (MTD) initiative.
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WHAT IS MAKING TAX DIGITAL?


MTD is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers. It is part of the Government’s plan to make it easier for businesses to stay on top of their day-to-day accounts. HMRC wants to be one of the most digitally advanced tax administrators in the world. RDP Accountants are MTD ready and are here to help you be ready too.

WHEN DOES IT START & HOW CAN IT HELP?


From April 2022, all UK VAT registered businesses need to keep records digitally and submit VAT returns to HMRC using MTD-compatible software.

The ultimate objective for MTD has three important distinctions:

Bank transactions and other financial information will flow automatically into people’s digital tax account, whether or not they declare that income or those expenses. Submission will need to be made at least once per quarter.

Submissions will need to be filed from within accounting software, not typed into HMRC website.
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