MTD

MTD stands for “Making Tax Digital” and is a Government initiative first announced in 2015.

The concept of MTD is to digitise the tax & accounting.

From April 2019 VAT registered businesses with a turnover over the VAT threshold (currently £85,000) have had to file their VAT returns through approved compliant software.

From April 2024 MTD will apply for Income Tax affecting millions of self employed, landlords and other taxpayers who file Self Assessment tax returns.

T4 are helping all our clients with MTD compliance.

MTD

Making Tax Digital

About

Making Tax Digital

T4 has operated a paperless office for many years and help our clients do the same.

Clients can even sign and approve documents on the move with our e-signing facility. 

Digital made quick, simple & easy.

 

VAT Returns & MTD

At present MTD only affects VAT registered businesses with a turnover over the VAT registration threshold which for 2019-20 is £85,000.

Businesses affected from April 2019 have to file their vat returns for within MTD approved software.

T4 recommend QuickBooks Online which is a world & UK leading online cloud accounting solution.

T4 helped all our clients into MTD without any extra charge, seamlessly and with no inconvenience or disruption to our clients.

We don’t have our own “app” as such. There is good reason for that! We don’t want to be tied to one app provider in a fast changing digital world.

T4 have selected key leading software and apps that we use and can recommend to clients. 

T4 make MTD easy for our clients.

Easy, quick, simple, painless.

Digital Records

At present there is no requirement to keep records such as expense receipts in a digital format.

However doing so can save a lot of time and costs.

T4 has operated a paperless office for many years, probably 18+ years.

We regularly monitor the ways we achieve being paperless.

Free or inexpensive, time saving, practical, useful and flexible digital records solutions.

T4 recommend keeping income and expense documents such as receipts OUTSIDE of your accounting software for a whole host of practical reasons, e.g. what happens if you cancel the software licence for any reason being just one good reason.

At present we also recommend keeping any digital copy AND the original document.

MTD & Income Tax

MTD for other businesses below the VAT registration was due to come in from April 2020 but was deferred and will now be go live from April 2023 and will apply for Income Tax from that date. 

 Approximately 11,500,000 taxpayers file Self Assessment tax returns to HMRC each year and almost half of those are filed in the deadline month of January historically.

Most people that file a Self Assessment tax return will be affected by MTD from April 2024.

Instead of one annual tax return this will involve 4 submissions to HMRC each year and also require submission for complaint software.

This will add substantial costs and time to tax return preparation and submissions to HMRC.

It is extremely important that all Self Assessment taxpayers start preparing for MTD now as leaving it until April 2024 is likely to mean it will cost you more!

 

 

MTD & Digtial Records

At T4 Tax Limited we looked at this issue carefully and can advise clients as to digital record keeping.

We know the requirements.

T4 also have superb, market leading solutions to make keeping digital records a breeze.

Free of cost effective software and apps.

A well thought out process that brings a whole host of time saving and cost  saving benefits.

Keeping Digital Records

Simple, Efficient, Effective, Practical Solutions

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