Are you Making Tax Digital (MTD) ready?
As many of you already know from April 2019, most businesses in the United Kingdom will be required to make, maintain, and then submit existing VAT records electronically. This marks the formal commencement of the HMRC initiative for Making Tax Digital (MTD).
The team at Pegasus have been working hard on building a seamless integration with the HMRC portal, that will allow you to electronically lodge your VAT return straight from the platform.
Why the change?
The Government wants to make it easier for both individuals and businesses to get on top of their affairs and keep their taxes right, not to mention eliminate the mistakes which cost the Exchequer an estimated £9 billion per year in lost tax.
First announced during Budget 2015, the switch to electronic records marks a turning point in the historically manual process, and is a welcome transformation for tax administration.
The aim for the HMRC is to become one of the most digitally advanced tax administrations in the world.
What does this mean for businesses?
Making Tax Digital will mean several things for you as a business owner, including;
The new integration that sits within Pegasus will reduce the amount of work required by you when preparing your VAT return. On top of that, agencies will have direct access to historical returns lodged with HMRC and be able to view the detailed transactions for each, rather than having to maintain detailed records outside of the system and logging in separately to the HMRC portal.
Making Tax Digital will allow for greater accuracy with submissions. Reducing the human intervention element that is currently prevalent when it comes to doing your VAT return, will mean there is more certainty in the numbers being lodged. This in turn will provide you with greater comfort and confidence in your compliance if the tax man comes knocking on the door.
From now on, business owners will be able to check their details are correct and up-to-date at any time, along with access to more tailor-made services. On the government side, HMRC will collect and process tax information in real time to help prevent errors and stop ‘tax due’ or ‘repayments owed’ building up.
With a digitised tax system, by 2020, business owners will be able to view their liabilities and entitlements as a single financial account, and be able to contact HMRC at a time convenient to them on its website via webchat and secure messaging.
How we can help
With the changes now in force, it means you will need to make sure your software provider is on the ball and has built an integration platform.
Without a Making Tax Digital compliant provider you won’t be able to lodge your taxes automatically and are therefore risking unnecessary penalties.
The HMRC has implemented this huge change with the hope of achieving a fully digitised online tax system, and Pegasus will be integrating every step of the way.
Get in touch with one of our staff members for a free Making Tax Digital consultation and discuss your agency software requirements.
With over 30 years of experience in the advertising and communications industry, Pegasus have built a reputation in the industry as leaders in technical innovation, exceptional client support,
and having a complete understanding of agency financial processes.
We provide a complete, fully integrated system that provides management with real-time reports, in order to support decisions that have to be made quickly, ensuring the agency operates efficiently.
With multinational groups, high profile creative agencies, and small, independent businesses as our clients, we focus on exceeding expectations and building long term relationships through innovation and outstanding support.
Pegasus provides your agency with a complete finance, production, and media management solution, all in one easy-to-use system.
Contact us here to find out more.