The Making Tax Digital scheme was announced in the 2015 budget in UK. Making Tax Digital (MTD) is a government program that aims to make it easier for businesses to report their income, expenses, and VAT.
What is VAT? Value-added tax is a consumer's tax on goods and services that are charged at every point in the supply chain where value is added, from the beginning of production to the point of sale. The VAT rate that businesses charge depends on what they sell. For example, electronic gadgets have more tax on them as compared to clothing products.
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From April 2022 it was restricted that all VAT-registered businesses will have to keep digital records. And businesses file their VAT returns using HMRC-compatible accounting software in UK.
As accounting software is designed for making tax digital( MTD) and makes it easy to file your VAT returns and other taxes. It takes the information from your accounting records and when you want to submit tax through software, it automatically links to HMRC's systems with a mere click.
Besides paying tax digitally, accounting software also provides other advantages as the success of your business greatly depends on the accuracy and reliability of your records. Well-organized records help you minimise losses, track cash, fulfil legal requirements, and better understand company finances.
Sign up for mtd through Moneypex accounting software to pay your VAT returns to HMRC.
The most obvious gain of digital records is the flexibility to easily update, edit, and document version control. And it especially benefits you the most in tax season. All the tax calculation is performed by accounting software from stored records and you will have to spend less time preparing your VAT return means you will always pay on time.
Businesses used to spend a lot of time and effort preparing their financial records before tax season. But thankfully accounting software made this task easy for small businesses by automatically tracking VAT received and due. Consistent and accurate records in accounting software make your tax preparations easier and help prove expenses if HMRC audits you.
Accounting software keeps records and reports of your already submitted VAT returns for future reference. This makes it simple to locate all the audit information when needed. Moneypex as MTD accounting software includes detailed audit reports to track when and how much VAT Returns are submitted to HMRC. You will have all the previous records and no one can claim you for not paying tax.
Moneypex is HMRC-approved accounting software for small businesses in UK to pay their VAT returns freely. You don’t need some separate tool other than your usual accounting software to register for MTD and file VAT returns.
You can register through Moneypex accounting software for MTD to pay VAT returns to HMRC for free. Because Moneypex calculates and records taxes on all sales, and then you can connect with HMRC to pay VAT returns with just a click. Request free demo or contact us to pay VAT returns with no trouble.
10 October, 2023
Filing VAT Return via Making Tax Digital in UK. VAT returns are the means via which VAT-registered businesses must provide HMRC with two important pieces of finRead More >>
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