Making Tax Digital (MTD) is a UK government initiative to make it easier for organisations to be tax compliant.
All organisations big or small will need to get ready for what is called ‘Making Tax Digital’. Please read on to find out more information and how the WSA will be able to help you comply with this important new legislation…
Will it affect my organisation?
Yes, unless you are covered by an exemption. MTD is being gradually introduced but will eventually become mandatory for virtually all organisations and businesses. MTD will also apply to not-for-profit organisations such as member associations and charities.
Who will be exempt?
At present this has not yet been decided, but it is anticipated that only the smallest of organisations, for example, with less than £10,000 income, will be exempt. It is likely that you will have to apply to HMRC to gain an exemption, if you think you qualify.
When dos it come into effect?
From April 2019 for VAT registered organisations with income above the VAT threshold
From April 2020 for all other organisations (or possibly later, depending on government testing)
What will it mean for my organisation?
Making Tax Digital requires your organisation’s accounting transactions to be stored in a digital format. This means that manual records for bookkeeping will no longer comply and the use of spreadsheets will need to be combined with MTD software.
The digitising of transactions is mandatory as MTD will require certain information to be sent to HMRC digitally on at least a quarterly basis.
What should I be doing now?
MTD raises a number of potential issues for WSA members. Whilst the legislation is not yet finalised in full, there are a number of important issues that should be considered now. These are:
- Check you can access your online tax account
Is your organisation registered with HMRC and can you access your online tax account?
- Is your current bookkeeping solution MTD compliant?
MTD will require you to send quarterly returns to HMRC and for this, you need to make sure your bookkeeping software is MTD compliant.
- Train your people
You will need to make sure your people understand MTD and can comply with its requirements. There will be penalties for late returns and non-compliance.
- Put together a timeline
Identify when MTD will affect you and work backwards; plot the tasks you need to complete to ensure you have plenty of time to become compliant.
How the Welsh Sports Association can help
WSA members can benefit form the following support in relation to MTD:
- Free support answering your questions via the completion of an online form via our website http://wsa.wales/contact/
- Advice one MTD compliant cloud accounting software
- Consultant support at WSA member rates, to support you through the process of becoming MTD compliant.
Stay tuned to the WSA website for further information on Making Tax Digital!