Implemented from April 2019 onwards, it 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. Making Tax Digital (MTD) is making fundamental changes to the way the tax system works i.e. transforming tax administration so that it becomes:

• More effective.
• More efficient.
• Easier for taxpayers to get their tax right.

At the moment, the MTD rules have only applied to VAT registered businesses throughout the UK i.e. any businesses earning over the VAT Registration threshold of £85,000 per annum must register for VAT and submit their VAT returns through a digital software online.

This new rule raised challenges for many new businesses that did not maintain a digital infrastructure of their businesses, particularly old businesses that have been incorporated for a vast number of years but were performing their statutory obligations still using the old traditional ways.

The new MTD rules are only applicable for VAT registered business at the moment, however next year onwards HMRC plans to extend the MTD concept and its requirement through to the Self-Assessment aspects as well.

Judging from the initial plans addressed by the HMRC, the new MTD legislations for Self-Assessment may require all individuals to prepare and submit their personal tax returns on a quarterly basis as well.

At Silver Tree Accountancy, we have extensive knowledge in making sure and that all of our client’s records are kept MTD compliant at all times. We also provide services in the migration of company’s data from old paper based accounting systems to the new digital tech software’s as well.