Making Tax Digital: What are the next important steps?
As a partner to more than one million UK businesses and 15,000 accountants, we understand the impacts that Making Tax Digital will have on VAT, Self-Assessment and Corporation Tax Returns. We want you to know we’re here to help you understand the impact and prepare for the for the transition. Whether it’s helping you take care of your accounting or tax or for straightforward, practical advice on how to ensure you are prepared and how to comply-our 3,000 strong team are here for you.
What are the key changes that have been announced?
Plans were announced by the Government (21 July) to extend MTD beyond the current remit; this is VAT for businesses with a taxable turnover above the VAT threshold to include all businesses and taxes. Specifically:
- 1st April 2022 Making Tax Digital for VAT will apply to all VAT-registered businesses, so those classed as voluntary with a taxable turnover below the VAT Threshold
- 6th April 2023, businesses and landlords with business income over £10,000 per annum, which are liable for Income Tax will need to keep digital records and use software to update HMRC quarterly through Making Tax Digital
What is Sage doing to support?
- Sage has a long history of guiding the UK’s businesses and accountants through legislative change (whether this be MTD for VAT, Auto Enrolment or RTI) and we’ll help you make your way through MTD compliance for all your taxes
- For MTD VAT, we already have software, there is no change in the requirements to comply, it has been extended to all businesses who are VAT registered irrespective of their turnover
- For other taxes, Sage will engage with our businesses and accountants to fully understand how to deliver the best solution. Following this, we will then release solutions, advisory and education content in a time-frame that lets users adopt and embed the new ways of working in time to comply
How has Sage already helped SMEs, Accountants and bookkeepers with MTD for VAT?
Sage worked in partnership with HMRC throughout the development and launch phase of MTD for VAT to successfully support thousands of businesses and accountants through the transition. We will continue to do so for the new extension to the MTD requirements, starting in April 2022. Sage has a long history of guiding the UK’s businesses and accountants through legislative change and we’ll help you make your way through MTD compliance for all your taxes.
Here’s a few key stats:
- Over 1.1 million submissions through Sage software since June last year
- Over 1,000,000 businesses used Sage’s online MTD Hub
- 12,500 businesses joined free Sage MTD training webinars
- We have had more than 10,000 practice success engagements with accountants and bookkeepers to support on significant compliance changes such as MTD
- Every month we have 25,000 support conversations and we have trained more than 200 technicians to offer MTD support
- We have held 25 MTD Roadshows (prior to COVID-19) in partnership with HMRC and were attended by more than 2,500 accountants and bookkeepers across the UK
- We ran specific events for the accounting community, including 40 MTD bespoke in-person and online events, which reached 5,000+ accountants and bookkeepers
We are supportive of MTD and there are three key benefits to the programme:
- It helps SMEs to digitalise important processing – basic technology has been shown to boost business productivity with an average cost saving of £17,000 per annum
- Businesses that digitalise their accounting means they have more timely and accurate information, enabling better business decisions to be made
- Digitisation makes it easier to share accurate information and those that adopt cloud-based can collaborate with advisors and colleagues better
Visit https://www.sage.com/en-gb/making-tax-digital/accountants/ for further information on how we can support your practice preparing for the next steps