Tax & Accountancy Advice Service, MTG System, Business Support, Start Ups, Bookkeeping & Wages
According to the government, Making Tax Digital, or the MTG system, is a way of ensuring that individuals and businesses are provided with a hassle free way to keep their finances in order regarding tax and VAT. It is generally accepted that the changes will simplify the process and make it more effective, efficient and easier for taxpayers to get it right first time. It doesn’t stop people from worrying about the changes though, which is understandable.
HMRC recognise that this significant change could present difficulties for some smaller businesses. This is why the tax office have listened to the concerns of stakeholders, and decided to delay mandation for these businesses until 1st October 2019. This gives ample time for thorough testing of the service for these customers, and the flexibility to discover any problems before the system becomes compulsory.
It appears that HMRC are committed to helping customers to get it right first time, and avoid mistakes. They have discovered that many people find the whole concept of tax difficult, and this costs the exchequer more than £9 billion per year! They say that this is due to mistakes and inaccuracies, which they expect the the digital system will avoid.
Tax changes other than VAT will not be mandatory until 2020, so people need not panic unduly, and there will be lots of help and advice from HMRC. A personal tax account will accumulate a customers information in one place online, and allows them instant access to their details on whatever digital device they choose. They can register for new services, modify their info and check up on how much tax they need to pay whenever they wish.
For friendly one to one advice and answers about all of your tax or VAT concerns, or any other financial matters, contact John S Culwick on 01268680702