Making Tax Digital is an HMRC, the UK government tax service, initiative to implement a fully digitalised tax system by 2020.
A key implication is that from April 2019 VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the Making Tax Digital service. This means no manual records. Therefore, if you currently use hard copy ledgers then you will have to move to either a computerised piece of software or spreadsheets.
VAT returns must be calculated on digital software and uploaded to HMRC’s digital interface. HMRC does not provide such a software, but it enables software providers (such as Xero, QuickBooks and Free Agent) to connect to their platform, automating the submission process.
What’s Goodtill’s role in MTD?
Preparing for digital tax compliance starts with recording each transaction error free and on a secure digital platform.
The Goodtill software sends your sales data straight into your accountancy platform (or to the cloud as a spreadsheet), which handles your automated VAT returns.
This means that the days of taking till receipts and typing them into spreadsheets are over. Goodtill takes all your daily sales information, payment details, cash vs. card information and any other relevant data and inputs it directly into the relevant fields of your accountancy platform.
This is just another example of where automation eliminates tedious manual steps, de-risks you from human error, saves you time, helps keep you compliant so you can sleep well at night.
Having consulted with a range of partners on Making Tax Digital and backed by a Development team, we are committed to assisting clients and prospects throughout the transition.
The article is an initiative which is not endorsed or connected to HMRC or any other 3rd parties software featured within the content.