Are You Ready for Making Tax Digital?
MTD (Making Tax Digital) is an HMRC initiative to digitise the UK tax system. The main aim is to make it more effective, efficient and easier for individuals and businesses to get their tax returns correct.
This new tax system will require the majority of business owners to maintain digital records using compatible software.
As of April 2019, businesses with a taxable turnover above the VAT threshold of £85,000 are required to file their VAT returns electronically using accounting software and are obligated to keep digital records of their transactions.
Manual submission through the HMRC gateway for VAT will no longer be accepted for most businesses.
Are my Sage 50 Accounts compliant with MTD (Making Tax Digital)?
If you currently subscribe to Sage 50c Accounts and you have v24.2 or v25 installed then you are ready.
If you have a perpetual Sage 50 accounts software licence and use v24.2 or older you will need to upgrade or order the MTD module for an additional cost (annual fee).
Get in touch today to see how we can help you to be compliant.