Making Tax Digital (MTD) makes fundamental changes to the way the tax system operates, and is part of the UK Government’s efforts to make it simpler for businesses to get their tax correct, while keeping on top of their other affairs.
The policy is already part and parcel for VAT registered businesses. By 2024, it will come into effect for Self Assessment taxpayers, too.
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world, and personally, we think this is amazing!
MTD will set you free.
‘Why is Making Tax digital worth shouting about?’ I hear you ask. Well, there are various reasons, the main one being that it transforms your tax administration into a more effective, more efficient, and easier procedure.
The accuracy that digital records provide, along with the help built into many software products, will dramatically reduce the amount of tax lost to avoidable errors.
This is because information is sent directly to HMRC from your digital records, sidestepping the possibility of transportation errors.