
Tim Smith provides a read & store guide to Making Tax Digital
- What is Making Tax Digital (MTD)?
- How will MTD change VAT processes for firms?
There has been a lot of noise around Making Tax Digital (MTD) of late. From TV and radio adverts to the news media, the government and other organisations have been urging businesses to take note of the latest changes to HMRC’s tax administration processes and make the necessary changes. Firms that fail to comply with MTD could also leave themselves open to incurring regulatory penalties. Yet, how many firms, law firms included, fully understand the new process and how it will affect the daily running of their business?
MTD explained
Making Tax Digital (MTD) is the government’s latest initiative which is set to change how accounts are managed in today’s legal sector. As of this week (1 April 2019) the first stage of the initiative will require firms to report and record their VAT transactions digitally in an effort to make the process more efficient.
The regulation, which applies to all VAT-registered