Making Tax Digital – What happens in April 2019?

making tax digital

Are you ready for your tax going digital?

Today, just over 10% of VAT tax returns are submitted digitally. If you or your accountant do not file VAT using software yet,  the way you pay taxes may be heavily affected as of April 2019. In this case, you may read on and start researching on digital Tax solutions now.

What is Making Tax Digital?

Making Tax Digital is an essential aspect of government’s ambition to make it easier for individuals and for businesses to stay on top of their resources, financial obligations and to comply with the legal regulations.  While this new policy will make HMRC one of the most digitised tax administrations in the world and many companies have already software automated many business processes, there’s a question on whether everyone is ready for the big change.

Who does the Making Tax Digital affect?

The new regulations will have an impact on businesses, accountants and bookkeepers. As of April 2019 businesses above the VAT threshold would need to file their VAT return online through a software solution on a quarterly basis. The new mechanism will improve accuracy and transparency on companies’ current accounts and will serve as a transition period before all income tax becomes digital in April 2020. You can review the full government statement here. 

When does it come into effect?

Ready to go?

Preparation for the new mechanism for tax filing starts with online real-time account visibility and should be initiated as soon as possible to minimise the pressure on the business the new process may impose.

Metaphorix is a leading Microsoft Dynamics Partner and provides a business management solution tailored for the construction industry. Based on Microsoft Dynamics NAV, our supported versions of the software will integrate seamlessly with HMRC to ensure full compliance with the new regulation – to save you time, money and to be by your side during a painless transition period.

 

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