Recently, DRG's Head of Outsourcing, Brandon Theron, ran a practical workshop on "Making Tax Digital (MTD)" to give businesses the opportunity to find out more about MTD and the steps that SMEs will need to take in order to be compliant.
As Brandon outlined, one of the main purposes of MTD is to eliminate manual accounting records in favour of keeping records in a digital format. VAT is the first tax to be reported under this system but there are plans to extend this over time. This means that traditional paper based records will no longer be deemed to be sufficient.
If a business is still maintaining its financial records via these methods, it will need to migrate over to MTD compliant software or will need to record all of its accounting records in a specified digital format such as Microsoft Excel and use bridging software to submit the relevant data to HMRC.
Brandon highlighted the importance of registering at the right time for MTD for VAT. The earliest a business should register is 5 working days after the last VAT return under existing scheme has been filed and paid. The latest date to register is 15 working days before you need to file under MTD. It is worth noting that it is currently taking 7 working days to register for MTD.
Find out more
If you have any questions about Making Tax Digital in your business, please do not hesitate to get in touch with Brandon Theron at DRG Outsourced Finance.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.