Making Tax Digital: check here if you need to register, when to do so, and how to do it
From April 2018, most businesses will need to be register for, and submit, digital tax records to HMRC.
You will need to tell HMRC about your financial affairs 4 times per year. You’ll submit information digitally (online) and pay tax 4 times per year rather than once.
It’s not just big business that need to register; all businesses (including self-employed, and small businesses on the side) will need to register.
Even if you’re a single mum, with a small second income from selling clothes on etsy, you’ll need to be ready for this.
The good news is NOT EVERYONE NEEDS TO REGISTER. The other news is that WHEN you need to register changes for different companies.
To make life easy, you can find out if you need to register for digital tax by filling the simple form below
If you need to register for digital tax, here are 3 easy steps to do so
Switching to digital tax is complex, and HMRC knows it. That’s why they will be testing the new system from April 2017. That’s also why some businesses will not need to register at all – and some won’t need to register until 2020.
But if you do need to register, it doesn’t need to be difficult. And in fact, you can probably start the process quite soon. Here are 3 steps you can take to ensure you are ready.
Step 1 – Start looking NOW for accounting software that works for YOU
You won’t be able to do your spreadsheets in Excel, or stuff an envelope full of old invoices. You’ll need to have all your records online, in digital format.
The other key things your software needs to do are:
- Calculate your quarterly turnover
- Calculate your quarterly expenses
- Collect additional information about your business
- Submit this information to HMRC
Pretty simple right? If you want to see how we do it, sign up for a free trial
Step 2 – Register with your digital accounts provider, and test their implementation of Making Tax Digital.
HMRC will make the new API available for public testing from April 2017 onwards.
We are aiming to be THE FIRST company to test the new capabilities, and will be offering a pilot scheme to selected users.
If you would like to be part of the early pilot scheme, first register for an account. You can then send us a message via the the Support Portal to discuss the pilot scheme.
Step 3 – When the time comes, make sure you start to submit digital records.
From April 2018 (for most small businesses) you will need to submit information to HMRC once every 3 months.
At 10 Minute Accounts, we’ll send you reminders when your information needs to be sent, and ensure you have all the tools you need to do this. Once your information has been sent, HMRC will confirm receipt, and update your tax records accordingly. You will then be shown the information of how much you owe, and when it is due.
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