Making Tax Digital is approaching - is your business ready?
The introduction of Making Tax Digital (MTD) is probably the biggest operational change to be introduced in the UK’s tax system in the last few decades. MTD will provide businesses with a modern, streamlined system to keep tax records and relay detailed tax information to HM Revenue & Customs (HMRC).
From 1 April 2019, all UK VAT registered organisations with a taxable turnover above the registration threshold (currently £85,000) are required to submit their VAT return data electronically via appropriate software that can:
- record and preserve digital records
- relay information to and from HMRC using an Application Program Interface (API) platform.
All affected businesses will need to review their VAT accounting processes and data to establish whether existing systems and processes meet the stringent MTD requirements.
We can help you understand and meet the new requirements in a cost-effective way, with minimal impact on your resources.
Use MTD to create your future-fit tax function
Businesses that embrace and implement MTD across their tax processes will be better prepared for the future and will benefit from better quality reporting, fewer errors and faster results – allowing more time to focus on the strategic issues that really matter.
Our team can work with you to improve efficiency, reduce risk, increase data transparency, remove process bottlenecks and integrate tax with the rest of the business – making the most out of the transformational opportunities that MTD offers.
Our methodology can help you with any of the five stages of MTD:
1 Document: blueprint your current systems and processes (including manual adjustments)
2 Assess: carry out gap analysis of current state versus MTD requirements
3 Analyse: consider the quality of your tax data and the master data underpinning the decisions
4 Implement: consider what changes you need to put in place to bridge gaps - changes to systems, processes and data
5 Test: implement changes and test your systems
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