Making Tax Digital

Ensure your business is VAT compliant with Reckon One’s MTD software.

What is Making Tax Digital?

Making Tax Digital (MTD) is a key HMRC initiative that is designed to make sure the UK tax system is more effective, more efficient and easier for taxpayers to get their tax right and keep on top of their affairs. It changes the way UK businesses, accountants and bookeepers do their taxes.

MTD for VAT makes it  mandatory for VAT-registered businesses above the £85k threshold to keep records and submit VAT returns digitally using HMRC compliant software such as Reckon One.

Accounting software in the cloud Your business is online so why shouldn’t your accounting software be as well? Reckon One is cloud based and has been specifically built for business owners to be used on any device, from any location, at any time. Programmed in HTML5 and hosted on AWS, Reckon One has both the flexibility and reliability to grow eCommerce businesses.
When does Payday filing start?  Payday filing was made mandatory for all employers from 1 April 2019.  Payday filing has been voluntary from 1 April 2018, and switches to mandatory from 1 April 2019. It’s a good idea to start thinking about how you’ll make Payday filing part of your payroll processes before this becomes a requirement.

When does Making Tax Digital start?

MTD became mandatory from 1 April 2019 for all VAT-registered businesses with a taxable turnover above the £85k VAT threshold.

Other components of MTD, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest and further details will be confirmed by HMRC.

How will MTD impact my business?

MTD is really not as scary as it sounds. If your business has a taxable turnover more than the £85 000 VAT threshold, all you (or your accountant) need to do is record your taxable records and submit your VAT returns through MTD-compatible software – like Reckon One.

The introduction of MTD brings a great opportunity for you to streamline your accounting process. Keeping records and filing tax digitally is a great step forward for your business, giving you the chance to regularly check income, expenses and profit.

Businesses below the VAT threshold can choose whether they adopt MTD or continue to use the HMRC online portal. This may be the perfect time to switch to Reckon One and be ready for any further changes to digital requirements from April 2020 onwards.

Track and report on GST. Great tax features ease the pain of tax time. Items can be automatically categorised to help you prepare your tax returns.
Why has Payday filing been introduced?  In 2018, the New Zealand Government passed Payday filing legislation to streamline the payroll process by aligning payroll reporting requirements with your normal pay cycle. Payday filing replaces your Employer Monthly Schedule (IR348) if you file online or your Employer Schedule (IR348) if you’re a paper filer.  Payday filing also makes it easier to spot and correct mistakes as soon as they’re made and ensures the Government receives up-to-date information for calculating yours and your employees tax and entitlements.

Reckon is supporting Making Tax Digital

Reckon has worked closely with HMRC to be on their list of ‘software that’s compatible with MTD for VAT’.

Our Reckon One online accounting software has VAT functionality to ensure you are MTD compliant, with no extra cost involved. If you are currently using Reckon One, your business will comply with MTD for VAT record keeping requirements.

You can also read our Making Tax Digital update article here.

Become Making Tax Digital compliant with Reckon One

Reckon One is HMRC-recognised for VAT and makes Making Tax Digital a breeze.