Making Tax Digital is an initiative by the UK government that aims to replace paper tax returns with digital versions. It was first announced in 2015 and was intended to be fully implemented by 2020. Ultimately, it will change the way tax returns are processed and will make the tax system more transparent and efficient. It will also eliminate the need for paper tax returns, which can be time-consuming and expensive.
The goal of Making Tax Digital is to streamline the tax reporting process and help businesses grow. It will help limit avoidable mistakes that slow down the process and cost the government billions of pounds a year. While the transition can be intimidating, it can also be a great opportunity for your business to improve your accounting processes and make more efficient use of your time. For advice from Bookkeepers Hereford, consider a firm like office-support.co.uk/bookkeeping
Making Tax Digital requires businesses and individuals to use compatible software to upload and submit their information to HMRC. These systems can connect to HMRC’s systems and allow businesses to digitally store records and calculate VAT. Businesses must sign up for the service through the government’s tax service. It is also possible to use spreadsheets to summarise and calculate VAT transactions.
Making Tax Digital is an initiative by the UK Government that aims to change the way tax returns are filed and submitted. By 2020, most businesses will be subject to this new system and will no longer use paper forms. Individual taxpayers will also be affected.
