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“Ready, Steady, Go!” – MTD is Live

On April 1st HMRC made MTD (Making Tax Digital) Live. This wasn’t an April Fools joke, it was finally here, and contractors couldn’t believe it.

It seems like MTD has been talked about for years. Almost like a myth or a legend, and contractors wondered if it would ever see the light of day.

Well, at the time of writing it is now 11:18am on 2nd April 2019, and here at Contractor Accountants we can confirm that MTD is Live.

That means if you are a VAT registered business in the UK and you make over £85,000 a year, then you MUST be registered for MTD.

“Don’t delay…do it today,” is our advice.

There are 1.2million businesses in the UK who are now subjected to MTD, and over the next few years it is expected everyone will have to call themselves a MTD contractor, freelancer, gig worker, or business owner.

In other words, if you are a contractor then you should get your making tax digital affairs in order and make sure you are legal.

The best way to do this is by hiring a contractor accountant and letting them setup your MTD account. They will do it on your behalf and without you having to lift a finger.

Our very own contractor accountants are experts in all things MTD. These are the best contractor accountants in the UK, and you can find them right here on this very website. Take a look and you will find them.

Back to the MTD launch and it is estimated that 100,000 businesses are already signed up to the MTD platform, with a further 4000 businesses a day joining.

Over the next 12 months HMRC will be giving businesses a gentle nudge to get them signed up and then a nudge will turn into a light slap.

Eventually it will be against the law to NOT be signed up for MTD…but for now HMRC are taking the soft approach.

Make no mistake about it. You will be prosecuted by HMRC if you don’t sign up and become Making Tax Digital Registered. Not now, but eventually…yes.

Not all contractors are in in favour of MTD, and if you remember, there was a lot of debate on the subject right here on the CA blog many moons ago.

A lot of our faithful readers wrote in and “Raged Against MTD,” calling it “ludicrus” and “a waste of space.”

Many others thought it was going to be a “major hassle,” and to “cost them more money.”

Eventually, some contractors started to warm to the idea of MTD. Let’s wait to see what happens, shall we.

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