Making tax digital
One of the biggest shake ups in tax for your business is set to take place soon – and it relies on a good internet connection.
Making Tax Digital (MTD) is designed to improve the effectiveness and efficiency of the UK tax system, and reduce its complexity.
As you can probably guess from the title, means submitting tax returns online, which will take place every quarter rather than every year.
All businesses should be on board by April 2019, meaning you need to ensure you have a good, reliable, broadband connection before then.
Who will be affected and when do the changes come into force?
The Making Tax Digital requirements will apply to all VAT registered businesses for their VAT obligations from April 2019 where their turnovers are in excess of the VAT threshold (currently £85,000)
How do I get a reliable internet connection?
You should give Solway Comms a call, on 01228 217171. We provide broadband connections for many respected local businesses, including Story Homes, David Allen IT Solutions, and Baines Wilson.
What does Making Tax Digital mean for Cumbrian businesses?
Making Tax Digital will provide a more modern, digital service which will help businesses get their tax right, with technology making it easier for them to do so.
It is hoped that it will mean an end to errors and mistakes. They contribute to this tax gap, are found in every sector with over £9 billion lost annually in tax.
Is it the same as an online tax return now?
This is not the same as lodging a return online. Most UK taxpayers have already done that for years. Making tax digital 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.
- Submissions will need to be made at least once per quarter.
- Submissions will need to be filed using some form of software (you’ll need to use an app that is integrated to your digital tax account).
Many businesses are already taking advantage of cloud accounting, which will help make the transition towards cloud accounting a bit smoother.