Making Tax Digital (MTD) for VAT Registered Businesses
We understand that the UK tax system is going to be mostly digitalized and you may be already familiar with Making Tax Digital (MTD) for your business ventures. However, this blog will give a brief about this.
What is MTD?
Making Tax Digital (MTD) is the key part of the UK government’s plans to transform the UK tax system into most digitally advanced in the world. The aspiration of HMRC is to the following by executing the MTD:
- More effective
- More efficient
- Easier for taxpayers to get their tax right
MTD affairs for VAT registered businesses
The transformation with Making Tax Digital (MTD) started (as mandatory) from April 2019 for VAT registered businesses those having taxable turnover above the VAT threshold of £85,000. However, the MTD is extended to all VAT registered businesses and organizations (including voluntarily registered), regardless of their turnover from April 2022.
Therefore, you should use MTD “compatible software” so that you can comply with MTD requirements. The best way is to check with your software provider or get advice from your accountants who can help on this.
Using software means it is extra costs to your business and requires technical knowledge for using the software. However, you will be benefited from fewer errors, better financial planning, and time to increase productivity from this.
Failure to comply with the MTD compliance, HMRC may issue a penalty notice.
How can The Stan Lee help on your MTD requirements?
At The Stan Lee, we have good hand to help you on your MTD compliance for your VAT registered business. We are Xero certified advisor and pleased to support you as a Silver Partner of this software. We offer for our clients on:
- Register for the MTD without charging any fee
- Set up your business in Xero as complimentary
- Have own access in Xero so that you can see your financial information from anywhere
For further information and advice about the MTD for VAT, please ring a bell with one of the friendly team here at The Stan Lee and let’s find out how we can work together.