What is MTD (Making Tax Digital)?
Making Tax Digital basically means that you will no longer be able to keep and submit manual VAT records and returns. HMRC will only accept VAT returns sent using software that supports Making Tax Digital, which is where Teqhou comes in to it. Once you are up and running you should find it far easier to submit returns online. “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. HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world… We’ve taken a major step forward in this ambition with the introduction of MTD for VAT. Many VAT-registered businesses with a taxable turnover above the VAT threshold are now require to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns.” Quote from www.gov.uk on Making Tax Digital.
MTD is transforming tax administration so it is;
- More effective
- More efficient
- Easier for tax payers to get their tax right
Teqhou are now working with Microsoft in co-selling this important legislative product. Your finance team should be aware of Making Tax Digital as it’s heading your way in October 2019. Teqhou are working on a patch for AX2009 to be delivered early September 2019 in readiness to make your company’s electronic VAT submission compliant. The electronic VAT return will be populated with information directly obtained from the underlying records on AX2009. The return will still look the same as it has previously done with its normal nine boxes, but behind these figures will be supplementary information providing a summary to HMRC of the cost types incurred, such as totals for rent and dates, motor expenses etc.