What’s the hoo ha around MTD

March 20, 2023

MTD simply means Making Tax Digital and it’s a government initiative to improve tax administration.

It’s moving us all towards an all singing and dancing digital tax service. Unfortunately, even if you’re not tech savvy you have no choice but to join the scheme. It will drag you into the digital 21st century kicking and screaming.

By law you must use MTD-compatible software to keep your VAT records and file your VAT returns. As we’ve said before it’s nothing to be feared in fact there are positive benefits such as it will reduce common mistakes and make it quicker and easier for you to manage your tax affairs. Anything that reduces the risk of human error and makes life simple is a bonus in our eyes

How do I sign up? Can I get support? Will my Data be secure?

We know you’ll have thousands of questions. Let’s address them one by one in the no nonsense Aspire way

How do I sign up?

To all of our current Aspire customers, you are all MTD compliant as we are fully operational on MTD Xero software so no need to worry.

  • If you’re not an Aspire customer, you need to choose compatible software.
  • You then need to allow permission in your software to work with MTD (not easy as there are codes to input)
  • Next you need to keep digital records of your VAT and Tax returns
  • Make sure you sign up for MTD and file your returns

Just to reiterate, Aspire have completed this already for all of our customers.

Can I get support?

If you’re an Aspire customer, you know we’re just a phone call away and we love you coming into the office to have a chat with us so support from us isn’t an issue. Alternatively, there’s the government website https://www.gov.uk/government/publications/making-tax-digital but beware, this isn’t as easy to understand as us folks at Aspire do.

Will my data be secure?

For sure! All MTD compatible software must be cyber secure and have privacy software.

In summary MTD makes us accountants smile too.

You may have noticed just before Tax return time we were a little bedraggled but now rather than have peak periods leading up to tax deadlines, submissions are made more regularly, and clients’ accounts are kept in better order. It also benefits our clients too as they can modernise their accounting processes, to get the benefits of reduced admin and a closer, more active relationship with their accountant which we love.

If you want to make your life easier then don’t hesitate and get in contact with us today!