Making Tax Digital (MTD) Explained
Are You Ready For Making Tax Digital, HMRC’s New Digital Tax System?
From April 2019, HMRC are introducing a new digital system called Making Tax Digital (or MTD for short).
What does this mean for me?
If you are a VAT registered business then VAT submissions can no longer be completed once a year manually through HMRC Services (sometimes referred to as filling in the 7 boxes). Instead, returns now have to be completed quarterly using MTD compliant software. In addition, all sales and purchase invoices have to be recorded digitally through MTD compliant software.
This will have a major impact on small and medium sized businesses who prefer a traditional approach to bookkeeping, however, this transition doesn’t have to be a problem as there are cost effective solutions to transition your records into MTD compliant software and submit your returns.
What can Ratiobox do?
We fully understand the cost and resource requirement that MTD will have on current business processes. We can take your records, in the way you like to prepare them and transpose them into the systems required to be MTD compliant.
Alternatively, we can work with you to adapt your processes with the necessary software and then submit your returns for you as your VAT Agent when they are due.
Is this going to cost me money?
There is no easy way to say this but yes. Ratiobox can take your current processes and work in the background to ensure your records are MTD compliant for as little as £50 per month.
This small cost will help you avoid any outlay of setting up and upgrading any existing or new hardware/software, training and communicating new processes to staff. It will also relieve the actual administration burden itself, not just yearly but on a quarterly basis. Ratiobox can remove this headache from you by managing this as part of our service offerings.
Want an Instant quote?
Call us on 0800 955 3350 or fill in the enquiry form below and let us manage this new requirement for your business so you can simply forget about it.