Are you Making Tax Digital ready? Get yourself prepared with these five easy steps

HMRC’s Making Tax Digital (MTD) scheme aims to put the UK ahead of most of the world in using tech to make taxation more effective, efficient and easier – giving contractors a greater visibility over their tax. From the 1st April, VAT registered companies in the UK will need to submit their VAT returns using approved compatible software. With the deadline fast approaching, we’ve compiled five quick and easy steps to make sure your limited company is MTD ready.

1. Get up to speed with Making Tax Digital

MTD is the biggest change to the tax system in a generation. To avoid any unexpected surprises, you need to be aware of not only the upcoming changes in April, but also of HMRC’s future plans to digitise tax.

In a nutshell, Making Tax Digital is a revision of the UK tax system that replaces manual processes with digital ones. It’s designed to save time, reduce errors and cut the risk of penalties.

Take a look at our simple introductory guide to get up to speed with everything you need to know.

2. Work out if MTD applies to you

HMRC are progressively rolling out Making Tax Digital, starting with MTD for VAT.

If you are:

  • VAT registered,
  • and have a taxable turnover above the VAT threshold (currently £85,000)

Your limited company will be affected by MTD and you will need to start following the new rules from the beginning of your first VAT period starting on or after 1 April 2019.

You can find more information to help you assess if MTD for VAT applies to you as well as a guide of how it could affect your company here.

Concerned about Making Tax Digital? Why not drop us a call.
Our upskilled team of experts will be more than happy to help.

3. Ensure you are keeping digital records with HMRC-recognised software

If you’re not already, now is the time to go digital with your accounts.

Businesses complying with Making Tax Digital for VAT will need to:

  • keep and preserve their VAT records in a digital form
  • file their VAT returns quarterly using HMRC-recognised software

If you’re already using cloud accounting software like inniAccounts, this will likely all be in hand. However, you may wish to speak to your vendor to ensure you don’t need to take any further action for MTD set-up. HMRC have officially recognised a range of software providers supporting Making Tax Digital for VAT. inniAccounts is one of them. Make sure your supplier is listed!

See how inniAccounts are providing an effortless MTD-ready experience here.

Explore our software for yourself and see what all the fuss is about.
Try our free demo today.

4. Check your accountant is ready for future changes and providing you with everything you need

New Making Tax Digital legislation and digitised processes can act as a prompt to review whether your current accounting service is still meeting your requirements. As well as being ready for MTD for VAT, your accountant should have a clear roadmap of their future MTD plans – so don’t be afraid to ask questions.

Switching accountants is much easier than most people think, so don’t be afraid to shop around and ensure you have a partner who understands your goals and saves you time and energy. Not all services are created equal; so take the time to find the package that best suits your business needs.

Here are some of the key things you should be looking for in an accountant to support you not just with Making Tax Digital but with your whole business going forward into an increasingly digitised future.

5. Start benefiting

MTD will help you to get your tax right, first time. Reducing the number of avoidable errors will also reduce the cost, uncertainty and worry that companies face when HMRC is forced to intervene. Along with spreading the administration and financial burden of your VAT, MTD offers the opportunity to move beyond compliance and open new growth possibilities to businesses (you can read a little more about these opportunities here).

If MTD is spurring you into embracing digital accounting, we promise you won’t look back. There are a host of benefits that will help you to save time, increase your productivity and improve your visibility and tax efficiency.

Why not compare our straight-forward plans…
and see if there’s a service that’s right for you.

Time to go digital

Whether you’re an existing client, looking for a hassle-free switch or simply want to brush up your knowledge – we’re here to make Making Tax Digital simple and provide you peace of mind. Preparing for digital tax starts with managing business accounts online. If you’re already using a competitive software like inniAccounts, the transition will be a smooth one. But if you’re making a change, it needn’t be a headache, MTD is a great opportunity to streamline your accounts and make your life easier with great software.

Learn how inniAccounts can help you with Making Tax Digital today.