Category: Making Tax Digital (MTD)

Making Tax Digital is an initiative by the HMRC envisioned to digitalize the UK Tax System, but is your business ready for Making Tax Digital? Are you and your business ready to adopt the reforms brought by the HMRC department? If not sure, then please read this blog.

According to the HMRC department, they have asked businesses to get ready for MTD, and as a result which, they have circulated a list of over 200 software products for businesses to choose from with a range of prices, including some are free, offering different levels of functionality to suit every business. But, if you are not sure whether your business is ready for MTD or not, then here’s what you need to do.

What do Businesses need to do?

If you are a business having an in-house accountant or a tax representative, then he / she will be aware about Making Tax Digital (MTD) and will advise you on how and when your business needs to make changes to be ready for the new services.

If you are already using one of the MTD compatible software suggested by the HMRC department, then register for the new service and authorise your software for MTD. However, if you are one of the businesses that are not using any software, then it is quick and easy to register; and there is lots of information available to make your business ready for MTD.

If you are confused whether your business fall under the VAT threshold defined by the HMRC department, then take necessary steps to confirm it first. This is because, if you are falling under the defined VAT threshold, then you need to start keeping your records digitally and sending your VAT return to HMRC direct from your software for the next VAT periods. If you don’t know how to do it, then it is recommended to contact an accounting firm like “Affinity Associates” to help you make your returns Making Tax Digital compliant.

If you don’t have an in-house accountant or a tax representative, need to select software to use and sign-up to MTD, then authorise their new software for MTD. The official website (GOV.UK) offers a lot of information on varieties of MTD compatible software – from free software to more straightforward tax affairs.

Contact Affinity Associates for MTD

If your business falls under the defined VAT threshold, and if you don’t know from where to start then, help is here. Affinity Associates is a London based accounting firm known for providing the best accounting and bookkeeping services to small businesses in London and across the UK. Affinity Associates is one of the leading names in adopting the MTD and other tax reforms put forward by the HMRC department, UK.

To know more about MTD and how affinity associates can help you, schedule a free consultation. Contact us at info@affinityassociates.com or dial 44-020-8903-2077.

Making Tax Digital (MTD) is one of the most revolutionary and transformational moves by the UK government to make it a lot simpler for businesses and individuals to get their tax right and keep on top of their affairs. With the introduction of the Making Tax Digital (MTD), the HMRC department aims to become one of the most tech-savvy tax administrations across the globe. MTD is designed to make basic changes in the way the tax system works – transforming tax administration so that it is:

• more effective
• more efficient
• easier for taxpayers to get their tax right

MTD will totally change the way in which all individuals and businesses report their financial details to the HMRC. With the MTD reform changing the way in which we all report our financial details, it’s time for all the businesses and individuals (earning above VAT threshold) to be stay prepared for it.

Every individual can now access their Personal Tax Account: You can now have access to your Personal Tax Account online at https://www.gov.uk/personal-tax-account. This Personal Tax Account gives you an up-to-date picture of your tax position in much the same way as online banking does for personal finances.

How Affinity Associates Can Help You Digitalise With MTD

Since April 2019, individuals and businesses with the turnover above the VAT threshold are asked to maintain their financial records digitally, and file their VAT returns to HMRC via Making Tax Digital ready software. Which means, instead of maintaining your financial records on paper, you have to use MTD compatible software. If you are unsure, whether your business needs to comply with MTD, then contact Affinity Associates for help.

If you are already maintaining your financial records in a software, then you need to make sure your accounting software is compatible to MTD or not.  This is because, under MTD, some businesses and landlords are required to keep digital accounting records. Spreadsheets are also accepted as digital records for MTD purposes, but they will need to be uploaded to appropriate software. If you have any confusion about which accounting software to use, then the team of accountants can help you find an MTD compatible accounting software for your business needs.

If you are one of the highly occupied entrepreneurs or a business owner not having enough time to keep your business records manually or over the accounting software, then Affinity Associates can assist you with everything related to MTD and VAT return filing. We will provide bookkeeping services and make the quarterly returns on your behalf.

Contact Affinity Associates for Advice, Help and Support

If you have any have any questions or queries related to MTD or how to file VAT return under MTD, then we are available to assist you in ensuring your tax summary is correct and you’re not over – or underpaying – tax. We are London based accounting firm with more than 40 years of experience, and you can contact us via email at info@affinityassociates.com or dial +44-020-8903-2077 for immediate assistance or a free consultation. You can also visit our official website to know more about our services at https://www.affinityassociates.com.