QuickFile provide all the standard reporting tools you’d expect in an accounting software package, along with project management tools, multi-currency and electronic filing for VAT. QuickFile also provide a Periodic Update report giving you a glimpse into how Making Tax Digital will work in practice. Making Tax Digital software for Mac. Making Tax Digital what is it all about. No doubt you would have received several communications from HMRC warning of the prospect of the Making Tax Digital Program. This means that all future VAT returns that are to be filled on the HMRC web portal. Jan 16, 2020 With just one click of a button, your VAT return is sent to HMRC via the Making Tax Digital Application Programming Interface (API). What’s more, you don’t need to have a particular data format or spreadsheet template to use VitalTax, as it can be used with any user-defined Excel spreadsheet. Making Tax Digital for VAT. With the introduction of HMRC’s Making Tax Digital Plan, Absolute have developed revolutionary bridging software to enable individuals, partnerships, companies and agents (or indeed anyone that is required to) to submit VAT data in the required MTD format to HMRC.
Making Tax Digital (MTD) is a UK government initiative that sets out a vision for the 'end of the tax return' and a 'transformed tax system' by 2020.[1]HM Revenue and Customs (HMRC) states that the main goal of MTD is to make tax administration more effective, more efficient and simpler for taxpayers.[1]
- May 01, 2019 Making Tax Digital software – how to choose There are two types of software you can use for Making Tax Digital. There are full-blown accountancy packages such as Sage, QuickBooks, Xero and FreeAgent, all of which can be used to submit VAT returns via Making Tax Digital.
- Tax software can be a great way to simplify your life when you don't want to pay for an accountant to file your tax returns. This is especially if you are self-employed and want to keep on top of.
Mar 13, 2019 DataDear has recently launched the FREE bridging software for submitting the UK VAT return under the Making Tax Digital obligations. Now you can choose to solve the MTD problem by using DataDear to connect to Xero, QuickBooks Online or HMRC directly. DataDear has already been approved by HMRC after having successfully submitted real VAT returns using this solution.
HMRC is implementing the initiative and is working closely with accounting software developers to ensure that taxpayers are able to make the switch to digital tax.[2] The outlined changes apply to a wide range of taxpayers, including most businesses, micro-businesses, self-employed people and landlords, as well as individual taxpayers.
Quarterly tax returns[edit]
Under MTD, taxpayers will send HMRC summaries of their income and expenditure at least four times a year. HMRC says this will enable a more ongoing and accurate projection of tax due, as opposed to the current system of one tax bill at the end of the year. To do this, taxpayers will need to integrate their accounts with software in some way. HMRC's 2017 consultation response stated that spreadsheets can be used if they can meet with HMRC’s technical requirements.[3] However, many taxpayers will use more comprehensive accounting software to avoid the complications of linking a spreadsheet to their digital tax account.[4]
Time scale for implementation[edit]
Along with a number of clauses, MTD was removed from the Finance Bill[which?] ahead of the 2017 general election leading to speculation that MTD had been dropped altogether.[5] However, as yet, HMRC has yet to comment on any changes to the following time scale for implementation:
| Date | Progress |
|---|---|
| January – June 2017 | Digital tax accounts show taxpayers an overview of their tax liabilities in one place. |
| July – December 2017 | Businesses, self-employed people and landlords with turnover above the VAT threshold start updating HMRC quarterly for Income Tax and National Insurance obligations through accounting software. |
| 2019 | Businesses, self-employed people and landlords with turnover between the minimum MTD threshold of £10,000 and the VAT threshold start updating HMRC quarterly for Income Tax and National Insurance obligations through accounting software. |
| 2020 | Most businesses, self-employed people and landlords can start updating HMRC quarterly for Corporation Tax obligations through their accounting software. |
| 2020 | The full range of HMRC services are available through digital tax accounts. |
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Uncertainty over MTD[edit]
In a survey conducted by FreeAgent, one of the accounting software developers involved in beta testing MTD with HMRC,[6] 84% of respondents thought there was a lack of information about the initiative. HMRC has provided documentation giving an overview of the initiative, but until legislation is set in stone the finer details of MTD, for example, exactly how those exempt from MTD will report their finances, remain unclear.
Exemptions[edit]
HMRC has confirmed that the following groups will be exempt from the initiative:
- The 'digitally excluded', or those who cannot use digital tools for reasons of religion, age, disability, remoteness or any other reason
- Charities (although trading subsidiaries of charities will not be exempt)
- Unincorporated businesses and landlords with annual sales below the £10,000 threshold
References[edit]
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- ^ ab'Overview of Making Tax Digital - GOV.UK'. www.gov.uk. Retrieved 2017-06-15.
- ^'MTD Its full steam ahead for the Pilot'. AccountingWEB. 2017-06-12. Retrieved 2017-06-15.
- ^'Summary of consultation responses - GOV.UK'. www.gov.uk. Retrieved 2017-07-06.
- ^'Making Tax Digital for small businesses and freelancers'. FreeAgent. Retrieved 2017-06-14.
- ^''Controversial' digital tax returns delayed after being dropped from Finance Bill'. The Telegraph. Retrieved 2017-06-15.
- ^'What do small businesses really think of Making Tax Digital?'. Freeagent.