Making Tax Digital
Are you confused by MTD? Follow our road map to see how it applies to you.
“At turpin barker armstrong, we are experts in market-leading accountancy and cloud-based digital solutions. We are excited to move our clients towards a digital way of accounting and tax reporting going forward, this will streamline processes for our clients and help us at turpin barker armstrong to work in a more environmentally sustainable way. We are following the guidelines from HMRC closely and will offer training and implementation services to help clients feel confident in the new ways of working”Dean Clark, Partner
HMRC propose that by 2020 they will have moved to a fully digital tax system. With Making Tax Digital (MTD), HMRC aim to synchronise its internal systems and so create one online account for each taxpayer, for all their different taxes within HMRC. Via their 'digital account' taxpayers will be able to view all their payments, and offset overpayments in one tax against underpayments in others. This will have ramifications for all businesses and individuals in how they interact with the tax system, and the majority will need to use software or apps to keep business records and to update HMRC on a quarterly basis.
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In summary, Making Tax Digital will mean:
For the taxpayer:
The end of the tax return
The ability to pay tax based on your business activity during the year
The ability to upload or update your tax account in real time
All of your tax information in one place
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The ability to pay tax based on your business activity during the year
The ability to upload or update your tax account in real time
All of your tax information in one place
For small businesses:
All of the tax information and interactions are in one place
No separate notifications of change of address or other details
Easy payment, time to pay and other options
Less direct contact with HMRC
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No separate notifications of change of address or other details
Easy payment, time to pay and other options
Less direct contact with HMRC
For HMRC:
The end of the tax return
Smoother processing of data by removing peaks
Better interaction with taxpayers
Ability to support taxpayers to “get it right first time”
Merging many back end systems to make a seamless front end
“Customer Golden Record” – all of the information about a business in one place
The ability to target information and support much more directly
View more
Smoother processing of data by removing peaks
Better interaction with taxpayers
Ability to support taxpayers to “get it right first time”
Merging many back end systems to make a seamless front end
“Customer Golden Record” – all of the information about a business in one place
The ability to target information and support much more directly
As a practice we’ve decided to use QuickBooks as our main solution as we feel this is the best fit for our clients, therefore we’ve added some great how to videos to demystify this.