When it was announced back in 2015, the government’s plan for Making Tax Digital (MTD) was nothing less than revolutionary.
The chancellor at the time called it “the death of the annual tax return”.
MTD improves the efficiency and simplicity of tax by requiring digitalisation, both for record-keeping and for submission of tax returns. In other words, businesses are legally required to use software for their accounting.
MTD makes it easier for businesses to get taxes right. Individuals and businesses have a better idea of how much they’re likely to owe when the time comes.
In turn, this aids cash flow and makes it easier to both spot problems and take advantage of opportunities.
As its name suggests, The ultimate guide to Making Tax Digital aims to help businesses get to grips with the three main stages of Making Tax Digital:
- MTD for VAT, which was introduced in April 2019 but is expanded in April 2022 to all VAT businesses, including those that are voluntarily registered for VAT.
- MTD for Income Tax, which will now be introduced in April 2024 and will affect millions of sole traders and landlords that currently use the Self Assessment system.
- MTD for Corporation Tax, which will be introduced no sooner than April 2026 and will mean millions of incorporated companies will have to follow the MTD rules.
If you own and operate a business as a sole trader, landlord or as a limited company, then one or more of the above will affect you.
Inside the pages of our free ebook, you’ll find guidance about what you need to know, including:
- The rules of MTD for VAT, Income Tax and Corporation Tax (as much as we know at the present time)
- Who is affected and when
- What you and your business can do to prepare ahead of time
- What software you need to ensure you’re MTD-ready
- How to sign up and what you’ll need in order to do so
- Working with an accountant to maximise MTD’s benefits
- A four-stage checklist that you can work through.
This unique guide will help you get ahead now and ensure you and your business thrive once you have to adhere to the new MTD rules.
Download the guide now. Your business will thank you.
Editor’s note: MTD for Income Tax has been postponed until April 2024. This article (first published in July 2018) has been updated to reflect that.
The ultimate guide to Making Tax Digital
Need help getting ready for Making Tax Digital? Download this free guide to learn about MTD for VAT, Income Tax and Corporation Tax, and what they mean for your business.
Bridging software from 123 sheets does the job and has saved me £80 per vat return which sage would have cost, and all for £19.50 for the first year!
We have used Sage Line 50 Professional for over 25 years, and paid the annual fee for program updates and the resolution of service problems.
Over the past 4 years the version current at that time has worked with HMRC to deliver the quarterly VAT return through the internet, direct to the HMRC site.
I expect the agreement of the maintenance contract to continue to provide a working version which meets legislative requirements, and continues to provide the current level of service including the existing ability to submit VAT returns direct to HMRC.
Otherwise the trek to Xero will include many loyal Sage customers.
Deleted (had a question on non cloud version – am covered on v. 25)
if Sage doesn’t come up with a solution for non-cloud Sage pretty soon then they are going to haemorrhage customers to Xero. RIP Sage.
Anyone who does not know about MTD by now should be allowed anywhere near Sage software. All anyone with a non-cloud version of Sage 50 wants to know is how much is it going to cost us as an add-on. Sage are obviously going to milk this as much as they possibly can, just give us the damage and when the patch is going to be available.