What is MTD all about, how will it affect you, and are there ways to make the digital switch easier on your part when considering your expense processing?
What is Making Tax Digital?
In an effort to pioneer one of the most digitally advanced tax administration systems in the world, the UK government is launching the Making Tax Digital service to help companies and individuals manage their tax payments quicker and more easily.
HMRC aims to transform the way the current tax system works by going full-on digital by 2020. This initiative was first announced in the Spring 2015 Budget.
Will MTD Affect You?
Basically, MTD will impact all taxpayers.
As part of MTD, tax returns will be phased out and replaced with digital tax accounts for both businesses and individuals. VAT-registered businesses with a taxable turnover beyond the VAT threshold (£85,000) will have to implement digital record keeping and submit their VAT returns quarterly, instead of annually, using approved Making Tax Digital compatible software to file their VAT returns.
When is it happening?
April 2019 is the MTD Deadline
HMRC has extended the compliance deadline until October 2019, for a small number of VAT-registered businesses with more complicated requirements.
How ExpenSys Can Help Make You MTD-Ready
To streamline and transition all tax compliance processes online, the Making Tax Digital service requires all concerned parties to keep digital records of all business-related transactions. This involves making electronic copies of information by capturing a digital image of a paper expense receipt, for example, and inputting the necessary data into your accounting software.
For many companies, this digital shift will require serious changes in the way they do their business and specifically their accounting, especially if they still manage a paper-based expense process.
But all of this can be simplified with ExpenSys.
Based in the UK, ExpenSys provides expense management software, as a service, to fit the unique requirements of companies of all sizes all over the world. ExpenSys can enable your staff to easily capture receipt images, expense information and even business mileage journeys via GPS, from a simple mobile application, and then automatically identify all legitimately recoverable VAT.
A comprehensive reporting suite, included as standard, lets you access all expense related data and receipt images in real time.
ExpenSys is a convenient, reliable, and fully automated system that requires no training or advanced tax knowledge from its end users. For more information, please visit www.ExpenSys.com or get in touch on (+44) 01249 859000.