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Making Tax Digital (MTD) preparation and management

Making Tax Digital is a government initiative to make sure the UK tax system is effective, efficient and easier for tax payers.

MTD compliant

Optimise accounting software

Save time

Your key contact

Jamie Snell

Director of Client Finance

Are you MTD ready?

Schedule a brief, no obligation call with our team today.

Schedule a discovery call

Making Tax Digital (MTD) preparation and management

From April 2019 it is mandatory for all businesses with taxable turnover above the VAT threshold (£85,000) to keep all their accounting records digitally and file all their VAT returns to HMRC through MTD software.

We can advise you on the latest accounting software to use and whether your software of choice is MTD compatible.

"MTD is not just another rule. It is an opportunity to streamline your systems and stay one step ahead."
Karen Coult
Client Finance Partner

How will this impact my business?

It depends on how you currently prepare your records
  • If you are using spreadsheets you will need to transfer over to MTD compliant accounting software. Spreadsheets alone are not MTD compliant.
  • There are over 150 accounting software available, but you will need to make sure the one you are using is MTD compliant.
  • From April 2020, HMRC will issue penalties to businesses that are not compliant.  

What are the benefits of MTD?

Opportunity to review your systems and process
  • Using accounting software can be seen as a real competitive advantage. Machine learning and additional connecting software will give you the ability to report on real-time information.
  • Connecting bank feeds and other apps will automate processes efficiently and will free up your time so you can run your business. 
"We help you cut through the jargon and make sure your business is MTD ready without the stress."
Caitlyn Evans
Client Finance Partner
"Using the right software means less admin, fewer mistakes and more time to focus on growing your business."
Luke Noble
Client Finance Partner

What should I do now?

Make sure that you are compliant
  • If you’re not using accounting software then transfer over as soon as possible. We can help you with this making sure it’s a smooth transition.
  • If you’re on accounting software then make sure that it is MTD compliant and ready to use. If you are unsure, please contact us and we can let you know.
  • Once on accounting software always make sure that you are using the most up to date version. 

Your client finance leads

Jamie Snell

Director of Client Finance

Caitlyn Evans

Client Finance Partner

Karen Coult

Client Finance Partner

Luke Noble

Client Finance Partner

Frequently asked questions

From 1st April 2019, HMRC introduced a digital service for VAT records and return submission.  VAT registered businesses with a taxable turnover of more than £85,000 must follow the rules for ‘Making Tax Digital for VAT’ by keeping some records digitally. From 1 April 2022 all VAT registered businesses must sign up, whatever they earn.

The MTD service makes submitting VAT Returns quick and easy. Incorporating the system into your current accounting software means you can see your VAT situation in real time.

 

MTD will be mandatory if you are registered for VAT and your taxable turnover is about the VAT registration threshold (currently £85,000).  From 1 April 2022 all VAT registered businesses must sign up, whatever they earn.

 

MTD does not require you to keep additional records for VAT, but to record them digitally. These should include for each supply, the time of supply (tax point), the value of the supply and the rate of VAT charged. They should also include information about your business, including business name and principle business address, as well as your VAT registration number and details of any VAT accounting schemes you use. 

 

Several accounting software have integrated MTD systems for example Xero, QuickBooks and Sage Accounting.

 

Businesses who use spreadsheets for their VAT records can use a form of bridging software so submit VAT Returns through the MTD service. Many of these are free for smaller businesses.

 

Yes you can still sign up for MTD, HMRC is encouraging business below to sign up, so they can also benefit from MTD. 

 

This is HMRC’s description of the digital tool that can take information from other applications, for example, a spreadsheet or an in-house record keeping system, and lets the user send the required information digitally to HMRC in the correct format.

 
 

Our core sectors

Our expertise spans a wide range of industries, with 60% of our client base concentrated in the following core sectors:

Professional Services

Consultants, agencies, engineers, and other specialised firms providing expert professional services.

Technology & Innovation

SaaS companies, crypto businesses, software development firms, and tech start-ups.

Manufacturing & Logistics

Manufacturers, supply chain operators, warehousing businesses, and logistics providers.

While we specialise in these areas, our diverse client portfolio includes businesses across various industries, from retail to construction and manufacturing to hospitality.

No matter your sector, we’re equipped to support your growth and success.

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Trusted by businesses like yours

"Caldwell Penn's transparency, professionalism, attention to detail, and friendliness distinguish them from all other firms we have previously engaged. They have exceeded our expectations by additionally offering R&D advice, which has significantly benefited our operations."
Allaero Limited
"While it’s hard to get excited about an audit, Caldwell Penn made the experience as seamless as possible. Communication was clear and effective, and the management letter provided valuable insights for our business. We highly recommend their services to any business in need of a thorough and efficient audit."
UK Lanyard Makers Ltd
"Caldwell Penn handle everything for us with a proactive, tailored approach. Their dedicated team understands our goals, ensuring we never miss tax-saving opportunities. They’re more than accountants, they’re partners in our growth."
Syon Creative Ltd

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