When the new Making Tax Digital (MTD) initiative was announced by HMRC, here at PM IT Systems we delved into mountains upon mountains of information regarding HMRC’s policies, to ensure our customers had the most complete picture of the situation in order to make informed decisions regarding compliance with the new rules.
Businesses who were over the £85,000 VAT threshold had to comply to HMRC’s new MTD rules. The majority of our customers had to update their systems to conform with MTD, removing paperwork or any form of manual entry of data from the equation. All data for tax and VAT now has to be transferred to HMRC via a software programme or group of compatible software programmes that connect to HMRC's systems without manually re-entering data - which is forbidden under the new system. This has allowed our clients to reduce the margins of error that could be encountered when manually compiling and submitting tax information in addition to complying with the new regulations.