Making Tax Digital (MTD) is the UK government's initiative to make tax easier for businesses and individuals – in fact, HM Revenue and Customs (HMRC) aims to become one of the most digitally advanced tax administrations in the world, by 2020. The shift to digital tax returns and calculations means that businesses will need to adopt or update their accounting software, to provide tax data once a quarter rather than once a year.
This infographic, part of the guide Making Tax Digital for VAT: What do HMRC’s updates mean for you? by Sage, gives a timeline of requirements and some detail on the type of data that will need to be recorded digitally. It shows that, over the next few months, all eligible companies – those above the VAT threshold – will be required to join the pilot programme, before adopting MTD for VAT from October 2019.
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