Making Tax Digital (MTD) is a government initiative designed to transform the tax system and to end the use of the tax return for a great many taxpayers. It is intended to make it easier for businesses and individuals to maintain records and to get their tax correct. Under MTD, businesses will be required to keep records digitally and make a quarterly return of data to HMRC.
MTD came into force on 1st April 2019 and applies to VAT registered businesses with annual sales over the VAT threshold of £85,000. If MTD applies to you, then you have to use digital tools to keep records of both your income and costs. Under the old system you could use the free Government Gateway to enter your quarterly
tax returns, but under MTD rules you’ll need to use software to submit your VAT returns electronically.
Both our Opera 3 and Capital Gold products are fully compliant with the MTD rules ensuring that our customers can fulfill their new obligations under MTD.
If you’d like to know more about what Making Tax Digital will mean for your business, contact Pegasus or your Pegasus Partner.
Overview of Making Tax Digital (Source: gov.uk)
HMRC VAT Notice 700/22: Making Tax Digital for VAT (Source: gov.uk)
MTD: Consultations – A collection of consultations around MTD reform (Source: gov.uk)
Introducing Making Tax Digital and the implications this will have to businesses within the UK.