Making Tax Digital

The Biggest Overhaul In Tax Filing

Making Tax Digital (MTD) is the biggest overhaul to the tax filing system in generations.

From 2023 any self employed business, sole trader or landlord with income of over £10,000 will be required to file under the Making Tax Digital Rules.

Increasing the numbers of filings to HMRC from 1, to 5 per year and require tax payers to undertake Digital Record Keeping.

They also do not allow tax payers to file directly via the HMRC website, instead, you have to buy special software to do file your reports.

It’s not going to be easy for many businesses. But don’t worry, Abacus Accountants can take care of it all for you.

Will I still be able to submit my self assessment tax return direct to the HMRC website?

Unlike with the current self assessment tax return system where you can go on to the HMRC website and submit your return, the new rules state that you can no longer submit directly to HMRC via their website. You will have to use a piece of HMRC approved software, or engage the services of an Accountant who can do that for you.

If that wasn’t disruptive enough, you will also no longer be able to undertake manual record keeping. Every transaction in your business or self employment must be recorded digitally, submitted to HMRC digitally, and done so in a specific format that is approved by HMRC. Yikes!

Get A Quote Today

Is Abacus Making Tax Digital compliant?

Yes – we use software that is compliant with Making Tax Digital. If you don’t want the stress or worry or setting up a new digital system, contact us today to see how we can ensure that your accounts are compliant with MTD.

At Abacus Accountants we are perfectly positioned to do absolutely all of this new tax admin for you. In fact, we’ve been working this way since 2006!

What does that mean in real terms? Well, if you wanted to send us a purple envelope full of paper receipts every month, we can digitise, account for and submit your MTD reports to HMRC without you having to lift a finger.

And if you love doing things digitally, our custom-made software is fully MTD compliant.

Rest assured that no matter how you like to work, Abacus Accounatants have a subscription that will work for you.

Stress Free (Making Tax Digital) Compliant Accountancy Service

Here at Abacus Accountants we understand the stresses involved in running a small business. Our hassle-free (MTD compliant) subscription based accounting services can take one of those stresses off of your hands. We help start-ups, sole traders, small businesses, freelancers and Limited companies with their monthly accounts.

We will do your

Monthly management accounts
Bookkeeping
VAT returns
Monthly payroll
Statutory end of year accounts
Corporation or partnership tax return
Self assessment tax return

Making Tax Digital FAQ's

How do I become compliant with Making Tax Digital?

To become compliant with MTD, you need to use government approved software to record your accounts and submit your finances to HMRC. You can refer to HMRC’s software search tool to find out more, or you can use a reliable accountant who already uses MTD compliant software - like Abacus Accountants- to sort it all for you. We know what we’d rather do!

I’m not VAT registered - should I still be compliant with MTD?

If you’re not VAT registered, we would still recommend that you use HMRC compliant digital accountancy software - especially if your business is close to the VAT threshold! It’s better to be prepared for when your business does cross the threshold. It’s also worth noting that for non-VAT registered entities, you’ll soon most likely be required to submit some sort of return up to four times a year instead of once. If it’s going to take up too much of your time, or if it’ll cost you too much money, you can use a reliable accountant - like Abacus Accountants- CALL US on 01753 516 161 and we'll sort everything for you. No stress - we’ve got you covered.

What are MTD Digital Records and what do I have to keep?

Keeping digital records is a core aspect of Making Tax Digital. From now on you will need to keep your records in a digital format, stored on a computer or in the cloud. If you use handwritten invoices or receipts then you'll have to transfer that accounting information into MTD compliant software before you submit your returns (or get your accountant to do it for you!). Keeping digital records doesn’t mean you don’t have to keep original paperwork. Quite the opposite, in fact. Original paperwork still needs to be stored as it could be required by HMRC in the event of a tax or VAT investigation. For most businesses, it means keeping paperwork for at least six years, though for many (VAT MOSS) it is a minimum of 10 years. HMRC will accept digital copies of receipts and invoices, so you could scan documents and store them to save on storage space in the office. But who has time for that? Something we pride ourselves on at Abacus Accountants is digitising records for our clients who don't want to use our app or their own MTD compliant software. If you prefer more traditional methods or are perhaps a little sceptical of a more digital future, you can send us all of your paperwork. We’ll scan and digitise it for you, saving you a lot of admin hassle and keeping you completely compliant with current and future MTD rules.

Will I have to file my VAT return more often due to MTD?

At the moment, no. Making Tax Digital won’t change how often you need to submit your vat return and you still have to send the same information. MTD will simply change how you record your finances as well as how you submit your quarterly VAT return to the powers at be, HMRC.

Will Making Tax Digital affect sole traders?

Yes, if you are VAT registered and your turnover is above £85,000, then the rules apply - it doesn’t matter if you’re a sole trader or a limited company! And eventually it is likely to apply to all businesses with a turnover over £10,000 as well as most individuals who submit tax returns - such as the self employed and landlords.

Is Ababcus Accountants Making Tax Digital compliant?

Yes - we use software that is compliant with Making Tax Digital. If you don’t want the stress or worry or setting up a new digital system, contact us today to see how we can ensure that your accounts are compliant with MTD.