Here at Capium, we have covered several informative blogs about Making Tax Digital (MTD) in an attempt to debunk the most common myths and to answer the most common queries our clients and readers have asked us.
The four main modifications put forward in the report published by the Sub-Committee to make sure that the road to the implementation of Making Tax Digital (MTD) is smooth, are listed as below:
On 17 th March, 2017, the Finance Bill Sub-Committee published a report which underlined the need for the government to postpone the implementation of Making Tax Digital (MTD) for businesses.
Britain is preparing its exit from the EU, which calls for reforms focusing on economic stability. Chancellor Philip Hammond presented his first Budget to the parliament, and here are the top three features that accountants and businesses can take away from the Spring Budget.
The Spring Budget for 2017 has just been announced, and there are many reforms regarding businesses that Chancellor Philip Hammond guarantees will make Britain “the best place in the world to start and grow a business.”
The world of artificial intelligence and human collaboration is not confined to Isaac Asimov or Arthur C. Clarke’s books anymore. With the recent advancements in artificial intelligence (AI) and machine learning, many applications are emerging to aid and intelligently automate the work processes in a business. And accounting is not behind, either.
You have probably heard of cloud technology and systems. Most of us have used them without knowing it . For instance, if you have ever shared files on Dropbox, or used online software like Microsoft Office 365, you have used a cloud system. Basically, any system that stores your data at a remote location, and makes it accessible to you online anywhere on the planet, is a cloud system.
In August of 2016, the government published six documents of consultation, taking into account each sector and element that could be affected with the implementation of Making Tax Digital. On the 31 st of January 2017, the responses and the changes on account of the feedback were published. Individuals and businesses had raised their major concerns about the digitalisation of the taxation system, and brought to light the perspective of the common people. Over 1,100 written responses were received by the HM Revenues and Customs. In addition to this, around 1200 online responses were received in the guide to consultations. In light of these responses, HMRC has agreed to make key changes in MTD, and promised to give consideration to some changes, such as exempting small businesses from the threshold of £10,000. The HMRC director of Business Customer and Strategy, Theresa Middleton, explained: “We have not included the exemption threshold and deferral threshold as the government has decided that it needs more time to consider these issues, but they will be confirmed before July 2017 when the legislation is laid.”
HMRC is set to digitalise the taxation system in the country by the year 2020. This will be applicable for landlords, entrepreneurs and most businesses, and they would require digital tools (applications or software) to keep their accounts updated. According to the timeline published in the MTD Roadmap, the businesses will be required to make regular updates for NIC and income tax from April 2018. In addition to this, they would also need to report quarterly through their digital account. But with the vote of leaving the UN shaking up the nation, people have been wondering how it would impact the implementation of MTD.
In the Budget announced in 2015, the government announced a plan for the digitalisation of the taxation system, which will make Britain’s taxation system the most digitally advanced all around the globe. This system, Making Tax Digital (MTD), has been received with lukewarm support, mainly because there have been many misconceptions about it. The vote to leave the EU only six months after the announcement for MTD did not help much, either. In this post, we will debunk the most common myths surrounding Making Tax Digital.