An Update On Making Tax Digital
With HMRC introducing an awareness campaign around Making Tax Digital (MTD), everyone should be aware of the new government initiative by now. But changes are frequently announced, meaning it’s hard to keep up to date with.…
10 Minute Read
With HMRC introducing an awareness campaign around Making Tax Digital (MTD), everyone should be aware of the new government initiative by now. But changes are frequently announced, meaning it’s hard to keep up to date with.
Thankfully, we’re here to regularly update you on what’s happening with MTD. We’ve gathered the very latest on tax’s shift to the digital world, so you can be fully prepared for its impact on you.
MTD for VAT
The first stage of MTD is still set to go live in April 2019. The public pilot has now been launched, so a U-turn at this point is very unlikely. HMRC want to stop offering free software for making your VAT return submissions. They are instead signposting to their register of approved suppliers that offer MTD for VAT software.
HMRC have an Application Programming Interface (API) that ensures integration with this software, so your VAT return will definitely be sent and received. The developers will also have access to your online tax account in Government Gateway. This means they can extract your VAT data. They will show this to you, making it effortless for you to stay organised when it comes to future VAT deadlines, bills and payments.
Whilst you still have a while to prepare for submitting your VAT digitally, it’s a good idea to get ahead of its rollout date. GoSimpleTax will be introducing our new VAT product in February 2019. You‘ll be able to familiarise yourself with the digitalisation of tax in advance, so that you’re not thrown by the change.
MTD for Business
MTD for Business definitely won’t be coming into force until at least April 2020. With no definitive date in place, it’s perfectly possible that we could see this further delayed. But for now, the submission of the Self Assessment tax return is continuing as normal.
In the meantime, HMRC are continuing to develop their APIs to allow software developers to get ready for April 2020.
That doesn’t mean HMRC can’t help with any questions you have in the interim. They will be offering assistance with MTD over the phone, as well as via their web chat, providing you contact them during their operating hours. Those eligible for extra support through HMRC’s Needs Enhanced Support service may be able to book a face-to-face meeting with them.
They have online web content available as well, such as webinars, YouTube videos and e-Learning courses. Third parties are offering help in understanding the digitalisation of tax too, and you won’t need to search for it. HMRC will point you in the right direction by providing links to the relevant e-Learning courses and how-to guides.
Submitting the Self Assessment tax return
Whilst we may not yet have a precise date for MTD for Business, you can still prepare for it with intelligent tax software. It provides automatic tips and helps to reduce your tax bill.
GoSimpleTax is on the list of approved suppliers, and we not only offer support and information like HMRC does, but go one step further by offering tax-saving suggestions and allowing you to see your tax owed in real time. There are also a variety of forms available in our packages, including the SA106 and SA109.
To get prepared for MTD, take a free 14-day trial of our Self Assessment tax return software today.
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