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Making Tax Digital; An Update!

Wed 21st Aug 2019
Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
It is HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works, transforming tax administration so that it is more effective, more efficient and easier for taxpayers to get their tax right.
Making Tax Digital began on 1 April 2019 however research shows that more than 3,800 businesses have struggled with the changes and have missed the first deadline to file VAT returns for April, May and June.Whilst almost 600,000 businesses still need to sign up to MTD and 12% of bosses from a You Gov poll admitting that they had not even heard of the new initiative.
There are many businesses who have missed the first deadline due to teething problems implementing the new system however, HMRC have announced they will not levy fines for businesses that miss the deadlines, provided they have acted in good faith. This is not going to be a long-term allowance though so putting measures in place to get to grips with the new system should be adopted as soon as possible.
If you’re working with an accountant, they should already be on the case for you, ensuring that you are compliant with Making Tax Digital. 2020 Accountancy will manage this for you, so our current clients are covered when it comes to being compliant.
If you’re a contractor or small business owner who is still unsure on how to proceed with MTD, please get in touch and we will be happy to direct you to what you need to do or offer our services to ensure compliance.
We look forward to hearing from you!
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