Making Tax DigitalWe’re ready, are you?
What even is Making Tax Digital?
The Making Tax Digital (MTD) initiative is one that has been in the limelight for a long time. Even today, there are still a handful of myths and confusions out there, so it’s time to set the record straight!
Some say MTD is “the death of the tax return” but for now that’s not the case. For us, the initiative simply highlights the importance of maintaining digital records and submitting HMRC returns via compatible software
Time is ticking with VAT registered businesses (with a turnover above £85,000) needing to file VAT returns under MTD from April 2019 with other taxes and businesses to potentially follow from 2020.
“Great service for preparation of our tax returns which saves me hours of head scratching work! Easy to understand advice.”
– John Scott
How does this affect me?
There’s no doubt that MTD is set to be the biggest change to taxation in a generation. With all the confusion out there, our highlights of what MTD means for you are:
Making Tax Digital means you will now need to store digital records in compatible software like Xero.
Xero is ready for the change and has created a new feature to file VAT returns, with HMRC providing the dates and Xero providing the info.
A seamless experience
If you’re using MTD ready software, everything will be right at your fingertips and available at the push of the button. We like the sound of that!
“My life is made easy as I know Tyrrell will take care of my books, and I really don’t have to worry.”
– Mandy Corcoran
Why we love Xero for MTD
We know and love Xero, and it’s great to see the new MTD for VAT feature available for users at no extra cost, no updates to install and better still, it’s a very familiar workflow to the VAT feature already in place.
But there’s another reason why we think Xero is great for Making Tax Digital: Efficiency. With the move to a digital world fast approaching, everything is focused around automation, saving you time as the business owner so you can focus on what’s important – running your business.
For us, it’s not about Making Tax Digital, it’s about making tax better, and focus on collaborating and ultimately growing your business to the next level.