In this post I hope to answer the question – why do we need to take this seriously?
Here is what the Government has to say in their article on 13/7/17:
Introduction to Making Tax Digital (MTD)
Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs – meaning the end of the annual tax return for millions.
Every individual and business now has access to their own personalised digital tax account and these are being regularly expanded and improved. HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world, modernising the tax system to make it more effective, more efficient and easier for customers to comply.
There is widespread agreement that Making Tax Digital for Business is the right approach for the future. However a number of concerns about the pace and scale of change have been raised. As a result the government has announced that the roll out for Making Tax Digital for Business has been amended to ensure businesses have plenty of time to adapt to the changes.
Businesses will not now be mandated to use the Making Tax Digital for Business system until April 2019 and then only to meet their VAT obligations. This will apply to businesses who have a turnover above the VAT threshold – the smallest businesses will not be required to use the system, although they can choose to do so voluntarily.
The government remains committed to ensuring we can deliver a modern digital tax system for all businesses and their agents, supporting them to get their tax right and reducing the amount of tax lost through avoidable error.
And there is plenty more to read in the pages that follow.
What do we need to consider?
So, when I ask around why is it that no-body seems to have heard about it?
A few quick Q&A’s which are purely speculative at the time of writing:
- Q – What do they want to achieve?
- A – Direct access to your earnings and expenditure on a daily basis (most likely)
- Q – What are they likely to achieve?
- A – Initially, a quarterly declaration which may well include daily analysis.
When all of this information is supplied, software will most likely analyse every piece of data. If you use a sensitive word for example, what will become of this? Which is why we all need to take this very seriously.
We are looking to help you more than we ever have before to get your records into the best view-able and analyzable format that we can and to make the whole process of reporting data a little less painful.
If you would like to know more about what we can do for you, please get in touch.