Making Tax Digital for Business (referred to as Making Tax Digital or MTD) is a government initiative all about making it easier for small businesses and their accountants, to manage and pay taxes. It aims to provide you with an up to date view on your tax position and enables you to help you manage your finances better.
As a technology company born and bred in the UK, Sage is working closely with HMRC, ensuring the voice of our customers is heard, and that this digital journey runs as smoothly as possible.
What Making Tax Digital really means
- All self-employed individuals, landlords and incorporated entities with business income over £10,000 will be required to keep digital records of all their income and expenditure and submit these records electronically to HMRC. Those in employment who have secondary income of more than £10,000 per year through self-employment or property will also be affected.
- HMRC will not provide you with the tools for digital record keeping and submission. These will be offered through commercial software providers.
- Those affected have the option to make the electronic submission in collaboration with their accountant or bookkeeper or can do this on their own.
- Updates to HMRC will need to be made at least quarterly, taxpayers will have an option to pay tax based on their quarterly submissions, if they wish.
- Any activity at the end of the year must be concluded and sent either by ten months after the last day of the accounting period, or by 31st January, whichever is sooner.
Support from Sage
In our experience, making life easier for our customers, whilst reducing the time spent on business administration and accounting, through seamless automation, world class support and confidence in compliance will be welcomed IF the implementation is sensible, pragmatic and pain-free.
Our commitment is to continue working hard to help small businesses adapt new technology to make the transition to Making Tax Digital a smooth one. We will support our customers every step of the way, helping you to understand exactly what MTD means for you and your business.
We’re working closely with HMRC to ensure transition is smooth. We’re involved in HMRC’s private beta and we’ll be participating in the public beta. Use our dedicated area page as a resource for your practice and your clients, and watch out for regular updates as we uncover more about Making Tax Digital.
We have a range of accounting solutions for small businesses and their accountants, to help you become familiar with keeping digital records. Find out more about some of our easy-to-use products below.
Pegg is a free, smart chatbot that you can access through Skype or Facebook. It makes light work of your expenses, records your receipts, tracks your spending, and can access your accounts in a simple, fun way. Perfect for small businesses like yours.
Find out more
Sage Expenses & Invoices
A free app for your smartphone. Perfect for cash-based businesses - add income and expenses, create sales invoices and get insight on how you’re doing. View your business performance any time right there in the palm of your hand
Find out more
Everything you need to take care of business. With easy invoicing, automatic bank feeds, reports and insight, and the ability to calculate and submit VAT returns direct to HMRC. Free yourself from admin with Sage One online accounting.
Find out more
If you would like to know more about Making Tax Digital, or how we can work with you, please call us on 0845 111 11 11
or download our free guide for Accountants and Bookkeepers.