MTD

Broadbents’ guide to Making Tax Digital

 HMRC’s Making Tax Digital (MTD) will impact on the way most small businesses and many individuals are required to record and submit their tax information.

 There are phased deadlines by which businesses and individuals must comply. Generally speaking, smaller, non-limited and non-VAT-registered businesses will need to use the approved digital formats earlier than larger, limited and VAT-registered businesses.

 In addition, different deadlines apply to different kinds of tax. For example:

 In Year 1 Income Tax and National Insurance data will be recorded digitally

 In Year 2 VAT data must be submitted digitally every quarter

 In Year 3 Corporation Tax data will be recorded digitally every quarter.

  

Who is affected?

 Broadbents will advise you whether and when MTD affects you. All qualifying non-limited and limited small businesses, private landlords, the self-employed, shareholders and company directors are required to comply.

 Who is exempted? 

 The following will be exempt from MTD requirements: 

  • Traders with an annual turnover below £10,000
  • Landlords with annual rental income below £10,000
  • Individuals with a second income below £10,000
  • Some charities and amateur sports clubs
  • Religious societies whose beliefs prevent the use of
    electronic communications
  • Persons who can demonstrate that MTD is not reasonably
    practicable for reasons of disability, age, remote location etc.

How we can help

Please download a copy of Broadbents’ Making Tax Digital leaflet as this can be read in conjunction with our website to give you a clear overall picture of what is happening.

You can choose from three levels of support from Broadbents.

DIGITAL LIGHT 

Our LIGHT package is for clients who are confident with digital platforms and wish to directly record and submit their tax-related information to HMRC. Broadbents will assist these clients with end of year reconciliations and also offer MTD advice and training and general accountancy advice as needed throughout the year.

DIGITAL 50/50

Our 50/50 package can be described as a ‘half way house’. The client enters almost all of the information digitally and Broadbents will review the entries, ensure the formatting is correct and make the submissions to HMRC. Broadbents will also offer MTD advice and training and general accountancy advice as needed throughout the year.

DIGITAL MAX 

Our MAX package is for clients who do not want to get directly involved in the digital formats required by HMRC. Broadbents will offer a fully managed service and ensure that, as in previous years, all information is submitted in a fully compliant format. Broadbents will also offer general support and accountancy advice as needed throughout the year.

  

Key benefits of MTD

1. You’ll have a complete real-time picture of your income, expenses and tax affairs
all in one in one place

2. You can see the tax you owe during the year rather than just at the year end and then budget accordingly

3. Quarterly updating will remove much of the form-filling and red tape and for small businesses it will mean the end of the busy period before the annual tax return

4. MTD will clarify your tax position and help you avoid surprises and fines for late payment.

 

More about MTD

For more information you can click the links below which will take you to HMRC web pages
and to the websites of the leading approved MTD software providers:

https://www.gov.uk/government/publications/making-tax-digital-for-business

https://www.quickbooks.co.uk/accounting-software/

https://www.xero.com/uk/

http://uk.sageone.com/

Others

For accurate advice on how Making Tax Digital will affect you, simply call

Broadbents on 01422 347 880.

 

Making Tax Digital Staging Dates

Here are the staging dates issued by HMRC. These were updated on XX/04/2017.

List here

What to do next

Take the first step to going digital today by downloading the free Broadbents App

Go to www.broadbentsltd.co.uk/about-us/broadbents-app

 For further MTD advice call us on 01422 347 880