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Making Tax Digital

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.

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 Mazuma 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.

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.

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 Mazuma – for just £32 per month plus VAT to sort everything for you. No stress – we’ve got you covered.

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.

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 Mazuma – to sort it all for you. We know what we’d rather do!

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