Making Tax Digital

The world of tax is changing.
By 2020 there will be no tax returns and all tax information will be collected digitally by HMRC
Now is the time to plan and prepare for MTD and we are here to help you
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    Making tax digital
    A new era for UK tax starts in 2018 and will be fully in place by 2021
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    Collecting all tax information digitally
    All personal and business tax information will be collected digitally - so now is the time to prepare
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    Dafferns, your digital tax advisor
    Controlling, sorting and making sense of all the information HMRC collect about you digitally

    Jackie Whitehouse - Personal tax client advisor
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    The Dafferns plan
    Dafferns are ahead of the game on MTD. Training our staff, selecting the best software and keeping you informed
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    Dafferns, experts on MTD
    We are here to make MTD a simple and hassle free process for you and your business

    Megan Hall - Personal tax trainee
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    The end of the tax return by 2020
    MTD means the end of the tax return and the end of the 31 January deadline. But in its place will be quarterly reporting and the need to have up to date accounting information all the time
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    The UK tax system is complicated
    The UK tax system is complex and convoluted. MTD will make some things more straight forward, but HMRC are not going away, so more than ever you need careful sensible tax planning and advice
  • Carol Jones
    Experience and knowledge
    Our private client tax team work closely with their clients provide a fast, efficient personal service

    Carol Jones - Private client tax advisor
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    All accounts will be on the cloud
    The quarterly submission of accounts information to HMRC by sole traders, partnerships and companies will mean the end to out of date desktop software. Cloud accounting is the future
  • Margaret Hopkins
    Helping you with cloud accounting for MTD
    We can help you set up a simple efficient cloud accounting system to ensure your small business can comply with MTD
    BR>Margaret Hopkins - Small Business accounts advisor
  • Teresa Roberts
    Working with you to minimise your tax
    Sensible, ethical, non provocative tax planning is at the core of what we do for our clients

    Teresa Roberts - Private client tax advisor
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    Dafferns are ahead of the game with MTD
    120 years of history, early adopters with electronic filing in the 25 years ago and still ahead of the game today with Making Tax Digital

What you need to know about MTD

What is Making Tax Digital?

Making Tax Digital (MTD) is a government initiative to modernise HMRC’s tax system, with the aim of making the whole process of administrating tax simpler and more efficient. All of your tax information will be in one place (your digital account) and you will be able to pay tax based on your business activity during the year and you can upload and update your tax account in real time.

Will it affect me?

If you own a business, you are self-employed or a landlord and you pay income tax, national insurance, VAT or corporation tax then it is quite likely you will be affected. This means you will be required to keep track of your tax affairs digitally using MTD compatible software, and to update HMRC at least quarterly via your digital tax account. Eventually this will abolish the annual tax return. This will be the law and there will be penalties for non- compliance.

What do I have to do?

You will need to open and log into your digital account. Everyone will be allocated one through the current Government Gateway. Then you will need to ensure your accounting software can update this account at least quarterly. For most businesses this means a move away from desktop and onto cloud based accounting software.

You are required to maintain your business records electronically and to provide updates of information to HMRC. You will be prompted to send summary updates directly to HMRC – quarterly updates will need to be submitted within a month of quarter end, and an end of year activity report will be due within nine months of the end of the accounting year.

As your accountant and tax agent, we can advise you on the software you will need and how to comply with the new quarterly reporting requirements.

When is all this happening?

MTD starts with larger unincorporated businesses for accounting periods commencing on or after 6 April 2018. There are various dates after this when other types of businesses have to comply.

What's next?

We will be contacting all of our clients in 2017 to prepare you and get you ready for Digital Tax well in advance. In the meantime, if you want to discuss how this affects you and your business please contact us.

MTD - The Clock is ticking