Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
- more effective
- more efficient
- easier for taxpayers to get their tax right
The reason that tax has turned digital is to ensure there are less inaccuracies when records and details are posted, and so far it seems that turning things digital has worked.
You need to use MTD Compatible Software to ensure that you are staying compliant within the rules and regulations that are set as part of MTD being made a legal responsibility. Using compatible software will ensure that you can keep accurate digital records and submit VAT returns.
Software that you can use to keep yourself compliant can be:
- A compatible software package that allows you to keep records and submit VAT returns
- Bridging software to connect non-compatible software (such as spreadsheets) to HMRC systems
Using compatible software will also give you the ability to enhance your reputation. If potential clients know that you understand MTD to the fullest and understand that you have the right type of software package in place that can give them what they need and stop them being penalised, they are going to put a lot more trust in you and this can lead to repeat business from them which can only be a good thing from your perspective.
For existing clients you have, by keeping in touch with them and updating them on what you are doing in terms of software, and potentially even discussing MTD with them, you can harness the relationship you have with them and you can strengthen your grip on obtaining all of their business (in the nicest sense of course).
For more information on MTD, VAT returns and much more, please head on over to https://mtdfvat.co.uk/ where you will find a whole host of information on the subject, along with details of how to contact them should you have any questions or queries that you have
Specifically if you are interested in the compatibility aspect please take a look here https://mtdfvat.co.uk/#solutions-for-your-in-house-software where you will get further crucial information.