Making Tax Digital is helping businesses to keep a real-time view on how their finances
MTD (Making Tax Digital) is helping businesses to keep a real-time view on how their finances are looking and what they could be doing better before their end-of-year accounts are calculated and it’s too late to do anything about it.
MTD requires your business to do digital record-keeping, as well as online tax filing and payment to reduce tax errors.
MTD is helping businesses keep a real-time view on how their finances are looking and what they could be doing better before their end-of-year accounts are totted up and it’s too late to do anything about it. Several online software packages exist to manage this information, which are also registered as compliant with the MTD system.
Making Tax Digital requires your business to conduct digital record-keeping, as well as online tax filing and payment to reduce tax errors, which came into effect for VAT in April 2019 and for personal tax it will be coming into effect in 2024. The process is all about using compatible software to manage your tax affairs.
MAKING TAX DIGITAL FOR VAT
If you are a VAT-registered business with a turnover of £85k or above (the current threshold), your business is required to join the Government’s ‘Making Tax Digital’ (MTD) scheme. Which now means you now need to keep digital records and send digital VAT returns.
From April 2022, the rules surrounding VAT-registered businesses changed, extending their regulations to all VAT-registered businesses in the UK, so it is now more important than ever to make sure that your business is following the government guidelines and setting yourself up for success as your business grows and develops.
If your business currently has a taxable turnover below the £85k threshold you can still use this service voluntarily, HMRC actively encourages this protocol, as the software helps you gain a better understanding of how your business is currently performing.
HOW WE CAN HELP WITH YOUR BUSINESS’S VAT
Our experts can complete various tasks to ensure your business is compliant with the latest rules and regulations, such as;
- VAT Registration
- VAT Return Preparation
- Submissions of returns to HMRC
- Confirming the correct VAT liability balance due to HMRC
- Setup of Direct Debit
- New Build VAT Reclaims
- Making Tax Digital
With a wealth of experience within:
- Cash Accounting Scheme
- Flat Rate Scheme
- Partial Exemption
MAKING TAX DIGITAL FOR SELF-ASSESSMENTS (ITSA)
From April 2026, MTD for ITSA will apply to sole trade businesses and landlords with a total business or property income above £10,000 per year.
This will mean a change to the way in which your business will need to manage your tax obligations with HMRC.
SET UP FOR MAKING TAX DIGITAL WITH VENTON
At Venton, we’ve invested in specific training with specialist software such as SAGE, Xero and Quickbooks to address this need and make sure your business is truly compliant with MTD standards. Whether you need help with setting up your account, training on the new software platforms or total account management, our team can make MTD work for your business.
NEED HELP WITH MAKING YOUR VAT COMPLIANT WITH UK REGULATIONS?
Whether you are a one-person team or a large business, we can help to keep your books in good order in compliance with the latest government rules and regulations, especially when it comes to making your tax digital.
If you’d like to find out more about our Accountancy Services, we’d love to hear from you – contact us, to kickstart your accountancy journey with Venton today.
Get In Touch
Call us today to discuss your Accounting or Conference facility needs. We would be delighted to hear from you.