Making Tax Digital (or MTD for short) is the term which HMRC are using to move all businesses in the UK towards a digital first system, allowing them to see how your business is performing through the year, and tax as appropriate.
This means that instead of just one ‘annual tax return’, you’ll be sending 4 additional returns through the year (one each quarter) as a ‘mini tax return’ to HMRC.
The returns will ask for your income and expenses, so that HMRC can tax appropriately. HMRC estimate that this could avoid a lot of errors with tax returns, saving around £8.5bn per year.
Malgra is currently working on a system to allow for direct MTD submission to HMRC from our spreadsheets and network systems.