Making Tax Digital (MTD) Archives - Page 3 of 5

Sep 06 2021

Change To Tax Year Basis

By admin HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News

Unincorporated businesses which draw up accounts to a date other than on or between 31 March or 5 April may need to prepare for larger than normal tax bills for 2022-23 This is because the Government is proposing a change to the basis on which profits are taxed, from the…

Sep 04 2021

Going Digital In Advance Of MTD

By admin HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News

From 6 April 2023 all unincorporated businesses will have to keep their business records in a digital format and submit quarterly reports derived from those records to HMRC using MTD-compatible software. These are the basic obligations under making tax digital for income tax self-assessment (MTD ITSA). The start date of…

Aug 11 2021

MTD For VAT: Crunch Time

By admin HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, VAT

Most VAT registered businesses were required to comply with the making tax digital (MTD) regulations for VAT periods beginning on or after 1 April 2019. HMRC has not been imposing penalties for non-compliance with those rules, preferring to nudge businesses with letters and advertising campaigns instead. However, HMRC is starting…

Mar 17 2021

Points Mean Penalties

By admin Budget Update, HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, VAT

HMRC is changing the way taxpayers interact with them in a project called making tax digital (MTD). Most VAT registered businesses are already submitting their VAT returns using MTD-compatible software and unincorporated businesses will have to use MTD software from April 2023. Income tax reporting by unincorporated businesses will be…

Dec 13 2020

Nudging to Correct the Tax Return

By admin HMRC, Income Tax, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, Self Assessment

HMRC uses data from many sources such as banks, land registries, and Companies House to cross-check information reported on self assessment tax returns. If HMRC's computer finds a mismatch between the third party data and your 2018-19 tax return you may receive a letter asking you to review your return.…

Sep 11 2020

Making Tax Digital (MTD)

By admin HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, VAT

The UK tax system is due an overhaul to streamline and digitalise the administration processes. The transition has already begun: since April 2019 businesses with an annual turnover of over £85,000 must submit VAT returns using MTD-compatible software and keep VAT records in a digital format. From April 2022 these…

Dec 06 2019

MTD Digital Links

By admin HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, VAT

Making Tax Digital (MTD) for VAT requires you to do two things: • record data concerning your sales and purchases digitally; and • transfer that data via digital links to the MTD-enabled software which is used to submit the VAT return. Many business systems contain pinch points where different software…

Oct 10 2019

How to Avoid a VAT Penalty

By admin HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, VAT

When a business submits its VAT returns or VAT payments late, whether via MTD software or the old HMRC website, the business will enter the VAT penalty surcharge system. Small businesses with a turnover of less than £150,000 get one free pass, so will receive an advice letter from HMRC…

Jun 14 2019

MTD: Avoid Muddles

By admin HMRC, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News

If you believe the adverts, accounting software is really easy to operate - but that depends on it being set-up correctly. When you use new software to submit VAT returns under MTD it must be configured for the particular circumstances of your business, for example: • are you using the…

Mar 08 2019

MTD Facts & Fiction

By admin Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, VAT

Your VAT software does not have to be cloud based and you do not need to keep your entire VAT accounting system on one software program. All VAT registered businesses with annual taxable turnover exceeding £85,000 must comply with the making tax digital (MTD) rules for VAT periods beginning on…

Making Tax Digital (MTD)

Change To Tax Year Basis

Going Digital In Advance Of MTD

MTD For VAT: Crunch Time

Points Mean Penalties

Nudging to Correct the Tax Return

Making Tax Digital (MTD)

MTD Digital Links

How to Avoid a VAT Penalty

MTD: Avoid Muddles

MTD Facts & Fiction

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