MTD? What is that?

I am sure you have all seen these 3 letters floating about – but do you actually know what they mean? AND, if it affects you?

MTD is Making Tax Digital – from April 2019. Any companies that are over the VAT threshold, will have to make their quarterly submissions through a compatible software, rather than through HMRC’s online service.

Our favourite software, Xero, is compatible – HOORAY!!

So, if you fall in the bracket, here is what you need to do, to get ready for MTD:

· If you already use an MTD compatible software, like Xero, chill – you are ready.

· If you currently use spreadsheets, you will need to look at some software to start recording this information.

· If you use a software that isn’t compatible, you will need to switch it up, and look at a different option.

So, you are in the bottom 2 bullet points – here is a list of the software suppliers that are supporting MTD: https://www.gov.uk/government/publications/software-suppliers-supporting-making-tax-digital-for-vat/software-suppliers-supporting-making-tax-digital-for-vat

If you are worried about this, or have any questions about going digital with Xero, ping us a message – we would love to help!

AC :)