Making Tax Digital

Making Tax Digital (MTD) is a government initiative designed to transform the tax system and to end the use of the tax return for a great many taxpayers. It is intended to make it easier for businesses and individuals to maintain records and to get their tax correct. Under MTD, businesses will be required to keep records digitally and make a quarterly return of data to HMRC.

MTD is set to come into force in April 2019 and will apply for businesses with annual sales over the VAT threshold of £85,000. If MTD applies to you, you’ll have to use digital tools to keep records of your income and costs. Currently you may use the free Government Gateway for entering your quarterly tax return, but this is due to close and from April 2019 you'll need to use software to submit your VAT returns electronically.

Pegasus Software has announced that their commitment to Opera 3 and Capital Gold customers is that their software will be fully compliant with the new MTD requirements and will continue to support them in their new obligations under MTD

Useful links:

Overview of Making Tax Digital (Source: gov.uk)
HMRC VAT Notice 700/22: Making Tax Digital for VAT (Source: gov.uk)
MTD: Consultations – A collection of consultations around MTD reform (Source: gov.uk)