Making Tax Digital (MTD) is a big part of the government’s plans to make it easier for businesses to get their accounts right and keep on top of bookkeeping.
Phase 1 of MTD was introduced on 1 April 2019, and VAT registered businesses with a taxable turnover above the VAT threshold (£85,000) have been required to follow the MTD rules by maintaining digital records and using HMRC compatible software to submit their VAT returns.
MTD is being introduced for Income Tax Self-Assessment from 6 April 2024 and self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from this date.
Cloud Accounting Software solutions
Cloud accounting software is similar to traditional desk-based software except it is hosted on remote servers and can be accessed from any device with an internet connection. It has the advantage of always being up to date, it can be accessed by multiple users and is flexible.
Businesses using spreadsheets to maintain records may still be able to do so under MTD, but HMRC has advised that these systems will need to link to and be submitted digitally through MTD-compliant software.
We can offer a variety of cloud accounting software solutions, all of which are MTD compliant, including Quickbooks, Xero, CCH One Click and Sage and we are happy to discuss your requirements with you to ensure you choose the package that is best for your needs.