Making Tax Digital

Accounting

Energise

Accounting Services to the Bar and Licensing Trade

 

Energise Accounting, 82 Shaftesbury Avenue

Coventry CV7 8NE

 

Tel 02476 335708 | Mbl 07392 030625

 

mike@energiseaccounting.co.uk

 

Making Tax Digital

Some of you may have heard of the Governments biggest transformation to the tax system since self assessment. It is being advertised as the death of the tax return although this is not strictly true. Making Tax Digital is actually going to increase the administration burden to business.

 

Here are the main points:

 

  • You will have a new online digital account
  • Most landlords run their business as a partnership or sole trader so they will have to move to MTD from April 2018 Ltd companies have until 2020.
  • You will have to report to HMRC on a quarterly basis. Much the same as your VAT return
  • You will also have to send a reconciliation of the quarterly reporting to HMRC once a year

 

However there are some good points:

 

  • All your tax liabilities will be in one place
  • You will be able to see the total you owe HMRC in one place
  • You will be able to make regular payments to HMRC

 

With Energise Accounting, if you choose our digital package, our systems are already setup for MTD and will actually reduce the time you currently spend on admin for your business to around an hour a week. This includes the time it takes you to cash up your tills plus you will not even notice the transition over to Making Tax Digital.

 

Overall with the correct support we think MTD is good for the pub trade as it will free up time for landlords to get on with running their business without their head being buried in paperwork.

 

All the above information is based on HMRC delivering the project on time. We suspect HMRC are determined to go through with the project as it has now gone into testing.

 

 

 

 

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