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