Trusted answers on Making Tax Digital for accountants and corporationsUnderstand Making Tax Digital for VAT
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HMRC’s Making Tax Digital (MTD) initiative is fundamentally changing UK tax systems and processes for businesses. MTD provides a modern, digital service that makes it easier for businesses to get their tax right the first time, not only reducing tax lost due to avoidable errors, but also reducing the cost, uncertainty, and worry that businesses face when HMRC is forced to intervene to put things right.
The initial focus of the programme was targeted.
MTD for VAT regulations had two phases and therefore came with two corresponding deadlines:
- Businesses were required to meet phase one by April 2019, which required the use of a “bridging software” for electronic filing of VAT returns.
- For the second phase, tax payers are required to establish “digital links” between all their data from source system through to the final return values. HMRC recently announced an extension from the previous April 2020 deadline to April 2021.
Meeting the requirements for the second phase is far more complex and challenging for businesses, as it requires evidence of an uninterrupted digital journey of a transaction from source systems through to the VAT return.
So, how do you find out what impact MTD will have on your processes and technology? How can you begin to plan for digital record keeping? To help, we’ve created a single resource for information, valuable insight, and trusted answers from industry-leading experts.What is Making Tax Digital?
Making Tax Digital software for accountancy practices
Provide an even better service to your clients with powerful workflow, analysis and communication tools. Manage the complete compliance process — from totalling and categorising data ready for MTD, to collecting data from HMRC and producing the final, adjusted accounting data.Explore Making Tax Digital software for accountancy practices
Making Tax Digital software for corporations
Thomson Reuters ONESOURCE Indirect Tax Compliance fully supports the requirements of Making Tax Digital. The software delivers significant process improvements and robust risk management – giving you full confidence in your VAT operations for MTD and any future regulations.Explore Making Tax Digital software for corporations