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Should I be ready for MTD?

So let’s clear a few things up, shall we?

Today I thought I’d dig a little deeper into MTD, (Making Tax Digital) because I think that there’s a lot of misinformation out there, that quite frankly needs a mention.

Some software companies (mainly the one with the little dancing people) are waving the MTD banner, citing April as the start date.


(I’m going to digress slightly, and send you to my blog about why those little people shouldn’t really be dancing)


Anyway, this is partially correct.

MTD did start in April. But only for VAT registered businesses. So, if you are a sole trader or limited company, and are VAT registered, then yes, you’ll be required to submit your VAT returns via MTD-approved software.


But… Given that MTD for VAT has been around for a while, most organisations are already involved and have been so for a while anyway. So no dramas there.


Should I be ready for MTD?

MTD for Self Assessment, however, is a whole different issue. It’s coming in April 2024, and you will be required to submit returns to HMRC on a quarterly basis, most likely using some kind of software. We don’t know the shape of it yet, and probably won’t for a while, simply because HMRC does have form for changing requirements and deadlines. But, most accountants, and I include myself in this, are heavily encouraging clients to move to digital accounting.


Why?

  1. It’s easier. If not for you, then for me.

  2. Clients can get better information about their business performance.

  3. Clients can keep up to date with bookkeeping, which seems to be a bit of a dark art for some.

  4. I repeat. It’s easier.

So hopefully, that’s eased a few minds, but if you want to chat over some software options, book a call, send me an email, hell, I’ll even accept a DM. As long as you don’t slide in.

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