Making Tax Digital

Millions of businesses are already banking, paying bills, and interacting with each other and their customers online. Making Tax Digital is being introduced by the HMRC and will help businesses to get their tax bills right the first time and reduce the £8 billion tax gap resulting from avoidable errors.

On 13 July 2017 HMRC has said that while it still believes that introducing a new digital tax system is still the right direction to move towards it has made amendments to the businesses this impacts and the timescales for change. The amendments to Making Tax Digital now mean:

  • Only VAT registered businesses will need to keep digital records and only for VAT purposes.
  • They will only need to do so from April 2019.
  • Businesses will not be asked to keep digital records or update HMRC quarterly for other taxes until at least April 2020 (the original dates had implementation from April 2019).

What does it mean for our members?

If you are VAT registered then you will need to move to digital record keeping (i.e. use software to record all your VAT invoices and receipts). If you are not VAT registered then digital record keeping is optional. However, these business owners can gain updated income tax estimates whenever they want, which will help with cash flow forecasting.

If you are VAT registered and do not yet use software to record your VAT information (invoices to customers and from suppliers) you need to start planning for MTD. The new implementation date is April 2019. More information can be found on GOV.UK

Making Tax Digital Commitment from BASDA

We continue to be the voice of our members and are actively involved in discussions with HMRC and are working closely with them on this topic.

This is a great example of BASDA working for its members towards making changes new regulation that would have been onerous on our customers and difficult for our members to change on their software.  BASDA has been involved behind the scenes from an early stage influencing the direction of discussion on Making Tax Digital.

   ” The government has listened to concerns raised by parliamentarians, in particular, the Treasury Select Committee, businesses and professional bodies about the pace of change and is taking steps to ensure a smooth transition to a digital tax system.

We are committed to helping our members achieve the best result for their business and customers.

News and Insights

Keep up to date with Industry News and Insights from across the BASDA membership.

Invoicing Compliance – Can Digital Business Really Help?

Guest blog by Tim Cole, Causeway Technologies As digital supply chain transactions continue to unlock benefits in support of individual businesses and the wider economy, governments are also looking at how electronic invoicing can reduce the many billions (£) of...

read more

BASDA welcomes Creative Navy UX/UK Ltd as a new Member!

Creative Navy UX/UI Ltd  specialise in user experience design (UX) and user interface design (UI) for digital products – embedded, mobile, web, enterprise, native or wearable. They solve complex business challenges using evidence-based design and create joyful user...

read more

Special Interest Groups

Established Specialist Interest Groups led by members on behalf of members addressing key issues that impact the software industry and our customers.

Making Tax Digital

Representing and working for members from the early stages of Making Tax Digital, we aim to ensure that future regulations are appropriately influenced at government level, before official implementation, for the future benefit of our customers and members.

Payroll, Pensions & HR

Representing members at Government decision making level to influence the requirements and legislation being introduced. We provide the opportunities to help influence decision making and implementation, in addition to providing foresight and product planning information vital for development road maps.

Interoperability & Standards

Focussing on enabling members to maximise eBusiness Technology and to facilitate the widest possible and seamless adoption of interoperability.

B2B Marketing

A collaborative forum where new ideas, best industry practice and marketing information to support strategic business growth applicable the B2B environment and specifically to the business software industry is shared for the benefit of members.

Accountants in Practice

Focussing on matters affecting the software products that firms of accountants use and, by extension, their clients. We provide an early introduction to matters in the regulatory and compliance environment, many of which have serious strategic impacts upon software developers, their customers and their customers’ clients.

Construction

Representing members on the Operational Forum of HMRC’s Construction Industry Scheme to contribute to the discussion on the operation of the scheme and ensure software changes are prioritised and appropriately considered.

Get Involved

Find out more about the benefits of BASDA and how to join.