The First of April 2018 means one thing for a lot of businesses across the UK. The First of April marks the beginning of the British Government’s Making Tax Digital Pilot Scheme. This is stage one in HMRC’s plan to make it easier for businesses to stay on top of the day to day. HMRC feel that the Making Tax Digital (MTD) plan will have a series of advantages to many businesses.
Some examples of this are allowing for greater transparency in communications with HMRC due to the fact that they will indeed be automated. Having automated reporting will place a greater emphasis on keeping accounts up-to-date. Furthermore, HMRC feel that the Making Tax Digital, allows for increased accuracy to take advantage of the UK’s digital infrastructure.
Some businesses are rising to the challenge, and some businesses are dreading the change to come. Whatever your feelings on Making Tax Digital, it is HMRC’s wish to futureproof the taxation process for years to come.
It is an absolute certainty that change is coming, and the way taxation is conducted will indeed look very different, in the not-so-distant future.
When Does My Business Have to Comply with MTD?
From the 1st of April 2018, the Making Tax Digital pilot scheme will be in operation. Making Tax Digital will stay in pilot status until this point next year, when it will be rolled out to all VAT registered businesses who are over the VAT turnover threshold of £85,000.
In 2020, Making Tax Digital will apply to all sole traders and partnerships with income between £10,000 and £83,000. The takeaway from this is that MTD will apply to most businesses in the UK in two years.
Does my Business Have to Participate in MTD Right Now?
Your business can elect to take part in the pilot scheme from the 1st of April, 2018. We feel that there are benefits to taking part, such as receiving support and ironing out wrinkles as they apply to your business before the system deals with significantly more businesses across the UK, and of course having a say in the development of MTD can be advantageous for your business as it gets to grips with Making Tax Digital.
Staying ahead of the curve is imperative in matters of business, and we feel that adapting early and rising to challenges is indeed useful in matters of accounts, too. Should you wish to enter your business into the pilot scheme, our team of accountants and tax advisors in St Asaph will be more than happy to assist with preparing your accounts for MTD.
How Can Salisburys Help?
Whether you’re an existing client or you’re looking for an accountant office which are embracing the challenges that MTD will bring, Salisburys Accountants in St Asaph are here for you.
We’re more than prepared to embrace MTD, and our talented team of accountants and tax advisors are ready and prepared to make the new system work for you.
Should you wish to know more, you’re more than welcome to contact our St Asaph Offices in order to obtain advice tailored to your business and your circumstances. Salisburys Chartered Accountants in St Asaph are prepared to help your business make the change to MTD in a pain and hassle-free manner, allowing you to get on with what you do best – running your business.