MTD stands for ‘Making Tax Digital’, and is the biggest restructure to the UK tax system since Self-Assessment was introduced in the late 1990’s

H.M Revenue & Customs state that:

“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.”

Its aim is to make its administration system the most advanced in the world, which will ultimately enable UK taxpayers to make their submissions more efficient and with a high level of accuracy

The Government has worked closely with numerous software providers ensuring that their back office systems are compatible with their digital platform, meaning that UK taxpayers can choose a system solution which is right for your business.

WHA Connect is our dedicated MTD department, are ready and willing to support you and your business to comply with these major changes.

There has been number of changes to the staging dates since the Government announced the plans for MTD, which has meant that many UK taxpayers and businesses are unsure as to where they stand.  However, the most recent updates are as follows:

Phase 1

The first phase of the planned implementation includes making VAT-registered businesses with a taxable turnover above the VAT threshold use the Making Tax Digital service to keep records digitally and use software for their VAT Return submissions from 1 April 2019.

Oct 18 Late 2018 Late 2018/Early 2019 Early 2019 Spring 2019 Apr 19 Oct 19
Open to sole traders and companies (except those which are part of a VAT group or VAT division) provided they are up to date with their VAT. Those who trade with the EU, are based overseas, submit annually, make payments on account, use the VAT Flat Rate Scheme, and those newly registered for VAT that have not previously submitted a VAT return, are unable to join at this point. Those customers with a default surcharge within the last 24 months will be able to join the pilot by the end of October 2018. Private testing begins with partnerships and those customers that trade with the EU. Open to other sol traders and companies who are not up to date with their VAT, users of Flat Rate Scheme and businesses newly registered for VAT that have not previously submitted a VAT return. Open to partnerships and those customers that trade with the EU. Pilot open for Making Tax Digital customers that have been deferred. Making Tax Digital mandated for all customers (except those that have been deferred). Making Tax Digital mandated for customers that have been deferred. The 6-month deferral applies to customers who fall into one of the following categories: trusts, ‘not for profit’ organisations that are not set up as a company, VAT divisions VAT groups, those public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payments on account and annual accounting scheme users. The deferral will apply to around 3.5% of mandated customers.

The Government has plans to roll out MTD for all Income Tax payers. These changes will apply to the self-employed, partnerships and to those who receive income from property; all references to businesses on this page includes all these groups. HMRC state that this will be implemented at the earliest by April 2020, pending any further changes by HMRC.

At WHA Connect, we are focused on ensuring our clients meet the various deadlines with ease and without major disruption.  Our team will carefully review your current bookkeeping structure and come up with an affordable, technically efficient and intuitive system so you can be MTD ready helping your business meet the upcoming staging dates.  We will ensure that you are not just MTD ready, but also fully MTD Compliant.

Xero is a market leading online accounting solution which is simple, smart and cost effective. Xero is designed to not only ensure that you are fully compliant with MTD, but can also take the stress out of bookkeeping and financials.

With Xero you can log in online anytime, anywhere on your Mac, PC, tablet or phone and see up-to-date financials. 

WHA have been a Xero partner since 2012.  We are a Gold Champion Xero Certified practice, and already host this software for a large number of our existing clients.

Our Xero approved practice page can be found here

We are also a ‘MTD Ready practice’, who can migrate and implement your accounting system on to the Xero platform.  We are also associated with a number of the Applications that run alongside Xero such as Receipt Bank.

Please contact a member of the WHA Connect team today to organise a demonstration and a trial today.

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Interested? Get in touch