The business of buying and letting property can be compared to playing three-dimensional chess. Decisions made at one stage will affect the tax payable and the deductions allowable for tax at later points in the property business lifecycle.
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.
Answers to frequently asked 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.
If you are an accountant, you should pass on these tax tips to your prospective and existing clients to help them boost their cash flow and reduce their tax bills.