Services
Making Tax Digital
Includes Making Tax Digital Services, Different Types For Making Tax Digital, FAQ
What’s Making Tax Digital?
- Businesses and self-employed individuals are required to keep digital records of their transactions.
- To reduce errors and improve accuracy in tax reporting and compliance.
- Digital tools and software must be able to connect with HM Revenue and Customs (HMRC) systems for data submission and updates.
- Failure to comply with MTD requirements can result in penalties.
- MTD is designed to make tax reporting easier and more accurate.
Different Types For Making Tax Digital
- Requirement: VAT-registered businesses with a taxable turnover above a specific threshold (currently £85,000) must use digital tools to keep records and submit VAT returns.
- Implementation: This phase is already in effect and requires businesses to maintain digital records and submit VAT returns using compatible software.
- Requirement: The initiative will eventually require companies to use digital tools to keep records and file Corporation Tax returns.
- Implementation: This phase is in the planning stages, with a future rollout expected to require businesses to comply with digital record-keeping and reporting.
- Requirement: Small businesses and self-employed individuals will be gradually introduced to MTD requirements, with a focus on simplifying the reporting process.
- Implementation: This is part of the broader MTD for Income Tax initiative, aimed at reducing the burden on smaller businesses and individuals.
- Requirement: Self-employed individuals and landlords with an income above a certain threshold will need to maintain digital records and submit quarterly updates to HMRC.
- Implementation: This phase is being phased in, with a planned start date and specific requirements yet to be fully implemented.
- Requirement: There is a future plan to integrate MTD with customs processes, potentially requiring digital record-keeping and reporting for international trade.
- Implementation: This phase is still in development, with details to be announced as the initiative progresses.
Our Value-added Service
Our dedicated team of Making Tax Digital (MTD) specialists is here to support your business with seamless digital tax solutions. We analyze your financial processes to determine the best strategies for digital compliance, ensuring you receive tailored and efficient services.
Our fast delivery Service
At FAZ Accountancy Services, we proactively strive to complete your Making Tax Digital (MTD) submissions within 1 to 2 weeks from receiving the relevant information you provide.
Never Miss a Deadline
You won’t need to scramble for last-minute paperwork for HMRC, avoiding fines and stress. We’ll proactively remind you in advance of any required information or payments.
FAQ
MTD is a UK government initiative aimed at transforming the tax system by using digital technology to make it easier for individuals and businesses to keep their tax records and submit returns. The goal is to improve the accuracy and efficiency of the tax system.
The key requirements include maintaining digital records of all transactions and submitting tax returns to HMRC using compatible software. For VAT, this includes digital record-keeping and submitting VAT returns through MTD-compatible software.
MTD currently affects VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000. It will eventually extend to all VAT-registered businesses, self-employed individuals, landlords, and corporations.
Businesses that do not comply with MTD requirements may face penalties from HMRC. Penalties can include fines for late submissions, inaccuracies, or failure to use digital tools.
Businesses that do not comply with MTD requirements may face penalties from HMRC. Penalties can include fines for late submissions, inaccuracies, or failure to use digital tools.