Making Tax Digital
The Government’s plan to introduce a fully digital tax system will change the way taxpayers record and report their income to HM Revenue & Customs. PKB Accountants can provide full support and guidance to assist you with this transition and ensure your systems comply with requirements.
Making Tax Digital is intended to bring the UK tax system into the 21st century by providing businesses with a modern, streamlined system to keep their tax records and provide information to HM Revenue & Customs (HMRC). The timetable for rolling Making Tax Digital has been amended to ensure that small businesses have more time to prepare for the changes.
The first to be affected will be small businesses and individuals with a turnover above the VAT threshold of £85,000, who will be required to keep digital records for VAT purposes from April 2019.
Making Tax Digital is designed to result in the following:
- Accurate tax information
Replacing paper-based bookkeeping with digital tax accounts will let you check the information HMRC holds about you is 100% correct.
Making Tax Digital’s new reporting function will allow HMRC will to look at your tax information almost immediately, reducing human error from data input.
Easier to understand
HMRC anticipates taxpayers will better understand how much tax is owed within the digital tax account – much like online banking.
Easier contact with HMRC
Making Tax Digital will make it easier for you to contact HMRC online via webchats and secure messages.
We are fully committed to supporting our clients through the transition to Making Tax Digital. For more information, visit our online accounting service page.