Making Tax Digital Accountants
MTD VAT Accounting - A Guide from Accounted Chartered Accountants
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HM Revenue & Customs (HMRC), which announced the Making Tax Digital (MTD) project in 2019, launched its digital method of VAT accounting on April 1, 2019. Over 2.5 million VAT-registered firms in the UK have been impacted by this. Please get in touch with your neighbourhood Accounted branch if you need any assistance with this.
'HMRC's ambition is to become one of the world's most digitally advanced tax administrations in the world.'
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Beginning in April 2019, MTD for VAT will be made available to all VAT-registered firms beginning in April 2022. MTD for income tax is required starting in April 2023 (for self-employed individuals and those with property-based income). 2020 is the anticipated year for a consultation on MTD for corporate tax, but no start date has been specified..
The advantages of MTD
The UK's tax administration will change thanks to MTD. It's "a crucial component of the government's plans to make it simpler for people and businesses to get their taxes properly and stay on top of their affairs." Many businesses have welcomed the shift to digitization, with 61% strongly agreeing that it is the proper course of action (but more than 25% of organisations disagree). The benefit of MTD is that it offers a quick and easy way to submit, store, and access data. However, there are difficulties with regards to practical matters like software requirements, software skills, the complexity of new reporting periods, and working digitally with overseas partners and suppliers.
MTD and VAT
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On VAT accounting, MTD has its first effect. The exclusions from MTD and their full responsibilities must be understood by all VAT-registered organisations. Making Tax Digital is transforming tax administration to make it more effective, efficient, and simple for taxpayers to file their taxes right.gov.uk
Important: : Fully comprehending the ins and outs of VAT reporting under MTD should be the top priority for UK firms that are registered for VAT. You must seek assistance from certified accountants who are knowledgeable about this new method of working; at Accounted Accountants, we can walk you through the process with the same energising clarity that we use to all of our work. Contact us right away to ensure you're on the right track and to have a full understanding of what Making Tax Digital for Business means for you!