Making Tax Digital

We have created this Making Tax Digital (MTD) Toolkit for Small Business, Sole Traders and Landlords to help you successfully move into the Digital Era

What is Making Tax Digital

Making Tax Digital, or MTD for short, is the name given to the government initiative that seeks to modernise and improve the processing of returns for all taxes, meaning more accurate and timely information available to HMRC and better liability predictions available for tax payers. Making Tax Digital simply means keeping your accounting records digitally, on the computer, in a way that is designed to be able to submit your records to HMRC in the way that they will require with MTD. The government plans mean that in time, all taxes will be required to have the returns submitted directly from your digital records. 

With Making Tax Digital in mind, we appreciate the differing challenges that are faced in bringing records into the Digital Era; we have launched a channel aimed at helping you to better understand the meaning of Making Tax Digital, what it means for you personally and guidance to help you!

Please subscribe to our channel to keep up to date with Guidance and information content as soon as it is available

Guidance for your chosen MTD Software

Quickbooks Guidance – using your Quickbooks Software

Freeagent Guidance – using your Freeagent Software

Sage Guidance – using your Sage Software

Xero Guidance – using your Xero Software

We are certified with these software providers and able to offer our clients with competitive pricing plans:

Making Tax Digital Timeline

Making Tax Digital for VAT

VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns.

If you are below the VAT threshold you can voluntarily join the Making Tax Digital service now.

VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax digital rules for their first return starting on or after April 2022.

Making Tax Digital for Income Tax

Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2024 (originally planned for 2023, on 23rd September 2021 the government announced a one year delay)

Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital service for Income Tax. If you are a self-employed business or landlord you can voluntarily use software to keep business records digitally and send Income Tax updates to HMRC instead of filing a Self Assessment tax return.

Making Tax Digital for Corporation Tax

The government has published a consultation on the future design of Making Tax Digital for Corporation Tax and welcomes views from companies and other organisations within the charge to Corporation Tax, agents, professional bodies and software developers.

The government will provide businesses with an opportunity to take part in a pilot for Making Tax Digital for Corporation Tax and will not mandate its usage before 2026.

Sapphire Business Services (Banbury) Ltd is delighted to share with you an innovative tool that we believe will help transform your business.  

AutoEntry reads information from scanned or photographed invoices, receipts, expenses, statements, and more. Simply take a photograph on your phone and all of the information will be entered automatically into your accounting software, or you can download the data into a spreadsheet.

Within our own practice, we have been using AutoEntry with great success. We are so impressed with the software that we have partnered with them to secure a significant discount for all of our clients. You can now purchase AutoEntry through   Sapphire Business Services (Banbury) Ltd    with a 50% discount for your first six months.  

We have organised a free trial of the software as well as free training so you can see just how much time and money AutoEntry can save you. Just click on the link below to sign up for the free trial. Should you later decide to subscribe, you can then avail of our client discount of 50% for your first six months. 

We are partnered with Starling Bank, supporting businesses as they move into the Digital Era click below for more information

National Residential Landlords Association provide lots of information for Landlords

Annual membership is £75, to receive a £15 discount from your first year’s membership fee you can use our discount code DSG-228