Making Tax Digital (MTD) is an initiative by HM Revenue & Customs (HMRC) to digitise tax administration. MTD aims to make tax payment for individuals and business effective, efficient and easier to get tax right.
Making Tax Digital will be effective from April 2019 for VAT registered business with a taxable turnover above £85,000 as a threshold. Business with sales over VAT threshold needs to file there VAT returns to HMRC using MTD compatible software. HMRC ensure a seamless transition to digital tax for taxpayers. By April 2020, HMRC has the vision to widen the scope of MTD by digitising income tax and corporation tax.
Under MTD one needs to keep VAT records digital, sign up for Making Tax Digital for VAT and use software compatible with MTD to submit VAT Returns. You must have correct software before you Sign up. We at SKATAX can help you do some or all the activities needed to make your tax digital. You need to submit your VAT returns to HMRC using software that extracts digital records and links them to HMRC to send and receive information.