Making Tax Digital (MTD) requires a dramatic shift in how accountants and their clients process financial information – both mindset and operations need to change to make MTD work in an efficient, profitable way. It’s time to shake off the shackles of being chained to legacy systems in a time where digital taxation is innovating to keep pace with other industries revolutionised by tech.
Welcome to the first article in our new series – answers to questions accountants often ask us about Making Tax Digital (MTD). This first FAQ is one of the most common, especially given that VAT is going digital starting in April 2019.
From all the industry discussion and HMRC guidance, we know that MTD needs to be a collaboration between accountants and companies. After all, accountants are reliant on regular data from clients, and there needs to be ongoing communication to comply with more frequent submission requirements.
(What it means for them in real life)
In recent conversations with clients, there seems to be a high level of uncertainty relating to the impact of Making Tax Digital (MTD) on their firms. One thing that everyone is unanimous about is that tax is changing. HMRC's intention with Making Tax Digital is to allow them to be able to interact digitally with all tax payers by 2020.