Making Tax/VAT Digital
HMRC has taken the initiative of Making Tax Digital (MTD) for a hassle-free tax-return experience. HMRC is striving to make the tax procedure transparent, practical, and trouble-free for individuals as well as businesses.
Making Tax Digital was made effective from April 2019. If you have a turnover that exceeds the taxable threshold, you can take advantage of MTD. The taxable income cap is £85,000 and above as per HRMC. However, complying with HMRC rules is crucial to free yourself up from penalties.
Businesses with total revenue of more than the VAT threshold should file the returns using software that is compatible with MTD. Additionally, HRMC is planning to widen the scope of MTD by digitizing Corporate as well as income tax from 2020. Without a doubt, HMRC has successfully achieved this milestone.
SK Accountants and Tax Consultants Ltd. have expert accountants on-board to help you out with all matters. We deliver quality results undoubtedly as our experienced accountants have the required skills to do the best in this field.
People who are unable to use digital tools to file tax returns for any reasons can use alternative options- regardless of the reason like age, illiteracy, disorder, etc., HMRC has the discretion to grant MTD exemption. Besides this, unincorporated businesses with annual sales of less than £10,000 and landlords can also get exemptions.
Once you have signed up, you will receive a confirmation e-mail within 72 hours. After that, you can submit the returns through compatible software without any trouble.
No matter which software you are using, it should let the candidate submit the VAT returns. In addition to this, the software must be compatible with MTD for VAT for successful execution.