How it affects your business
For businesses with a turnover above £85k, the MTD deadline is April 2019. If that includes you, you’ll have to update your commercial accounting software to an MTD-ready version.
If you submit your VAT returns manually – that means you type your information directly into the HMRC Gateway – you’ll have to integrate commercial accounting software into your business. From April 2019, HMRC will only accept submissions made directly through accounting software. Manual submissions will no longer be accepted.
HMRC are also looking to expand MTD to cover Corporation tax and Self-Assessment by April 2020.
Change can often seem daunting, especially if it requires you to adopt new technology. Don’t regard Making Tax Digital as just another obligation. This is your opportunity to streamline your accounting and business management. Keeping records and filing tax digitally gives you the chance to regularly check income, expenses and profit in your business – which will help you to make better decisions.