Making Tax Digital enters the home straight

5th February 2019

Owners of VAT-registered businesses continue to receive letters through the post notifying them of the phased rollout of Making Tax Digital (MTD).

There are less than two months to go until MTD comes into effect for the first group of businesses with annual taxable turnover of more than £85,000.

From 1 April 2019, firms with VAT return quarters ending on 31 March, 30 June, 30 September, and 31 December will submit digital accounts.

That is, of course, barring any further last-minute changes from HMRC or political turmoil spilling over from the ongoing Brexit saga.

Making Tax Digital: phased rollout

Nearly all VAT-registered businesses, and there were 2.67 million of them at the last count, should be part of the MTD regime from 1 June 2019.

Businesses with VAT return quarters ending 30 April, 31 July, 31 October and 31 January will then adopt MTD from 1 May 2019.

Finally, firms with VAT return quarters ending 31 May, 31 August, 30 November and 28 February will be under the scope of MTD on 1 June 2019.

By then, all these businesses should be paperless and filing their VAT returns digitally, while MTD will apply to all taxpayers outside PAYE in the future.

A small minority of VAT-registered businesses with complex requirements will have to wait until 1 October 2019 to be mandated to join MTD.

Making Tax Digital: our approach

Being partners of Xero, the UK’s most popular digital accounting software provider, puts us in a prime position to hit the ground running with MTD.

Our team of experts file VAT returns every quarter using Xero’s digital accounting software, which is also proving popular with our clients.

More than 90% of our clients have ditched outdated desktop software or spreadsheets in favour of adopting Xero, all of whom feel the benefits.

Not only does this ensure all parties work from the same set of numbers, it also guarantees the transition to MTD will be seamless.  

Get in touch

Our team is all set for MTD, are you? Email or call 0117 973 3377 for more information on how we can help your business.

Despite our recent merger with Burnside Chartered Accountants, you will still be able to communicate with us using these details.