Making Tax Digital (MTD) is fast approaching, so what is it and who will it affect?
What is Making Tax Digital?
From 1 April 2019 VAT registered businesses with a taxable turnover above the VAT registration threshold (£85,000) will need to keep digital VAT records and submit their VAT return to HMRC using MTD compatible software. This is mandatory for VAT return periods that start on or after 1 April 2019.
Why is it changing?
The UK government want to make it easier for businesses to get their tax right and keep on top of their affairs by introduction of a new initiative, Making Tax Digital for Business (MTDfB).
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world and MTD is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
• More effective
• More efficient
• Easier for tax payers to get it right
This streamlined digital experience will integrate tax into day-to-day business record-keeping in a way that gives businesses confidence that they have got it right and provides them with a view of their tax position in-year.
It is anticipated that the move to digital integration will eliminate many of the existing paper-based processes, allowing businesses and their agents to devote more time and attention to maximising business opportunities, encouraging growth and fostering good financial planning.
Key2 user? Don’t worry we’re MTD ready!
At Jaama we strive to ensure our customers are ahead of the game when it comes to legislative and industry changes and ensure their fleet operations remain at the forefront of compliance, efficiency and cost savings.
To accommodate the new legislation Key2 has been enhanced to allow VAT returns to be submitted to HMRC directly via Key2. Users will also be able to request obligation dates and liabilities for a particular tax period from HMRC via Key2.
For more information on MTD and how it might affect you, visit GOV.UK