[06/12/16]

Making Tax Digital

Maybe it’s because we’re accountants and so we read different newspapers to everyone else, but it seems like there are an increasing number of stories about Making Tax Digital (MTD) surrounding the business community. 

The Financial Secretary to the Treasury, Janet Ellison, has announced that the introduction of HMRC’s MTD drive may be delayed until 2019 for most businesses to give them more time to adjust. 

At this early stage in the process we want to assure you that, as clients of My Management Accountant, you’ll be compliant with whatever HMRC decide the final plans are, even though it must be said that at this stage HMRC haven’t even fully defined their plans for MTD. 

So, how can we be so certain you’ll be compliant with plans that are yet to be finalised? 

We use two key pieces of accounting software in MMA. We prepare VAT returns and management accounts using Xero, and we use BTC for producing year-end accounts, corporation tax returns and self-assessment returns. 

BTC have already confirmed they are part of the software developer community being consulted by HMRC. They have assured us their software will be fully compliant in time for MTD. 

I’d be surprised if Xero weren’t part of that software developer community as well and I expect Xero will make the same assurances to us if it becomes apparent that MTD has an impact on data stored within that software, such as quarterly management accounts – in a similar way to which they already allow us to prepare and file quarterly VAT returns directly to HMRC using Xero. 

Of course, we’ll share more news about MTD as and when it becomes available. 

 


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