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Making Tax Digital

Making Tax Digital is going to affect every business.

This timeline below will show when you need to be ready.

So what does this mean...

There are four parts to the MTD system and they are designed to make the tax system better for you.

Better Information

The idea is that you won’t need to provide the government with information that it already has or can get from other sources. It should be able to source this information from employers, banks, building societies and other departments. You will have access to all the information they hold on you and can make corrections as and when required.

Real time tax

If waiting until the end of the year to calculate tax is not an ideal situation for you, then the new system will let you see what you owe throughout the year. HMRC will collect and process tax information as and when, helping to prevent errors and excessive build up. This is what we are trying to work towards anyway.

One Account

As it stands, there is no one single place where you can see all your liabilities and entitlements. This will change with the new system, where you will be able to see your entire financial system in one place, just like your online banking platform.

Interactivity

You will now also be able to contact HMRC agents directly and receive advice and support about your tax account. Xero will let you send and receive information directly.

What do I need to do?
Individuals
Both
Businesses