1. Making Tax Digital Update
REUTERS / Dominic Ebenbichler
Making Tax Digital Update
Mark Purdue
Product Manager – Tax Products
Thomson Reuters
October 2018

2. Content Making Tax Digital – Key points Update on MTD Progress at HMRC
What are Thomson Reuters doing to support the process

3. Thomson Reuters
Tax & Accounting – part of a larger organisation (e.g. Legal, Reuters News etc.)
Operates in multiple countries US UK
Australia
Canada
South America
India
In the UK, we provide tax and accounting software to firms of accountants under the Digita brand

4. Digita Devon based company since mid-1980’s
Acquired by Thomson Reuters in 2008
Professional suite of products
Tax (Corporate, Personal, Trust, Estate)
Accounts Production
Company Secretarial
Practice Management
We support sole accountants to Top 4 firm

5. Making Tax Digital Key Points

6. Making Tax Digital – What Is It?
HMRC modernisation of the tax systems to improve efficiency, and reduce errors
Current scope is VAT
Extending to Income Tax and Corporation Tax no earlier than April 2020
Plan is to reduce tax gap attributed to errors and mistakes
For the scope of VAT, two main changes;
Business VAT Records must be kept digitally
Submission of VAT data must be done via ‘digitally linked’ software
Initial impact are businesses with turnover above the VAT threshold
Those who have voluntarily registered (below VAT threshold) are currently exempt from rules
Additionally, it is possible to be excluded from the MTD rules by reason of age, religion, location, or for any other reason.

7. Making Tax Digital Pilot and Next Steps

8. MTD Timeline  Pilot Commences  Go Live Date 2018 2019 Oct Nov Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Sole Trader – UK only 
Limited Company – single – UK Only

9. MTD Timeline First VAT Period that starts on or after 1 April 2019
 Pilot Commences
 Go Live Date
2018
2019
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Sole Trader – UK only 
Limited Company – single – UK Only
Partnership – UK Only
Sole Trader – EU Sales
Partnership – EU Sales
Limited Company – single – EU Sales
First VAT Period that starts on or after 1 April 2019
When is my business affected?
For most businesses, one of three start dates;
1 April 2019
1 May 2019
1 June 2019
Thinking of your most recent VAT quarter;
Quarter to end of September = Start 1 April 2019
Quarter to end of October = Start 1 May 2019
Quarter to end of November = Start 1 June 2019

10. MTD Timeline  Pilot Commences  Go Live Date 2018 2019 Oct Nov Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Sole Trader – UK only 
Limited Company – single – UK Only
Partnership – UK Only
Sole Trader – EU Sales
Partnership – EU Sales
Limited Company – single – EU Sales

11. MTD Timeline  Pilot Commences  Go Live Date 2018 2019 Oct Nov Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Sole Trader – UK only 
Limited Company – single – UK Only
Partnership – UK Only
Sole Trader – EU Sales
Partnership – EU Sales
Limited Company – single – EU Sales
Traders Based Overseas
Limited Company – VAT Group / Divisions
Trusts
Not for profits (non-corporate)
Annual Accounting
Gov’n, NHS, Local Authorities & Public Corp.

12. Supporting the MTD Pilot

13. What are the challenges of MTD?
Key challenges for accountants
Supporting their clients
Submitting VAT data to HMRC
Record keeping
Must be digital
Spreadsheets are now OK by HMRC (assuming they are suitable for your business!)
Link needed from transactional record to the submitted data
Submitting Data to HMRC
Currently, a large number of submission are directly to HMRC via their website
No longer possible under MTD
Submission via software

14. Support from Thomson Reuters
Easy to use software for accountants
Allowing businesses to continue with existing spreadsheet record keeping
Allowing the accountant to make VAT adjustments via spreadsheet
Submit VAT data to HMRC

22. Questions?