MAKING TAX DIGITAL

Make the most of the opportunity for growth and embrace digitalisation with Wolters Kluwer’s CCH OneClick.

What is Making Tax Digital?

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Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right. MTD is the most significant change to the UK tax system since the introduction of self-assessment.

According to HMRC, its ambition is to become one of the most digitally advanced, effective and efficient tax administrations in the world. MTD aims to encourage organisations to truly embrace digitalisation to minimise potential human error and ensure HMRC is maximising the amount of tax it can raise.

The first phase of MTD goes live in April 2019 when VAT registered businesses over the threshold will have to submit data directly to HMRC via compliant software.

Wolters Kluwer has delivered a VAT Filing solution that allows you to maintain your current VAT processes as closely as possible. CCH OneClick is predominately built for accountancy practices and their clients to embrace digitalisation and MTD however, it can be easily implemented for a company as well.

We have created this MTD website to help you and your practice prepare for MTD.

VAT Filing

From April 2019, HMRCs online interface, where 87% currently manually enter VAT submissions, will no longer be available to those over the VAT threshold.

Currently only 13% of accountants use other tools such as bookkeeping software to submit the relevant VAT data to HMRC. To comply with the MTD process and avoid facing the non-compliance penalties, businesses with a turnover above the VAT threshold of £85,000 will need to embrace digitalisation. HMRCs final VAT notice is a valuable resource to refer to. Click here to view the notice. 

Future proof your software

Wolters Kluwer has developed an end-to-end solution that enables you to maintain many of your current processes.

Accountants can analyse data from various systems including online bookkeeping software all in one central place. If your current VAT preparation is completed within a spreadsheet, this process can continue with CCH OneClick.

Once you are content that all the data is correct and ready to be submitted then you will be able to upload your spreadsheet through our MTD toolset using CCH OneClick. The software will find all the data necessary for the nine box VAT requirement and submit it directly to HMRC’s website.

For more information on how CCH OneClick can help with MTD, please click here.


Find out more

Wolters Kluwer MTD Checklist

Get prepared with our checklist

The time to engage and plan for the changes to VAT in MTD is now. Adopt this step by step process to help you make the transition stress free.


Download checklist

HMRC’s pilot

One way to get ready for when MTD will go live is to be part of HMRC’s pilot. Businesses who are VAT registered can voluntarily choose to submit their VAT returns via the new system.


More on HMRC’s VAT pilot

Income Tax

MTD will fundamentally transform the accountancy industry. Accountants and their clients will need to prepare for the rollout of the second phase of MTD and for how certain tax actions will be completely changed.

From April 2020, businesses will be required to keep digital records and submit quarterly updates online to HMRC (subject to confirmation by the government).


MTD-Income-Tax-Timeline


Quarterly reporting

Quarterly reporting is a key element of MTD for Income Tax. It will change the current process of submitting information to HMRC once a year, making it a task that will have to be performed five times per year (including the end of period submission).

A significant advantage to the taxpayer is that this will give them as close to a real-time view of their tax position as possible. A significant challenge to the accountant, however, is doing the same work they complete annually, quarterly, without increasing cost to client or slowing efficiency. While the deadline for quarterly reporting seems far from now, the change is so significant, the earlier you can prepare for it, the better.

End of year and end of period submissions

End of year and end of period submissions

Individuals and businesses will need to send an end of period submission for their businesses and property income.

This end of year submission will need to consider the quarterly updates and any final necessary adjustments. This is often referred to as the ‘fifth quarter’.


This submission not only needs to take account of all the business data from the quarterly reporting, you will also need to digitally collect any other income, from multiple sources (such as banks), and make sure your client validates the information.

Income Tax pilot

Sole traders who only gain income from one source can voluntarily register for the Income Tax pilot.

Instead of filing a Self-Assessment tax return, they would be requested to keep their business records digitally and send Income Tax updates to HMRC. This will mean that these individuals will see an estimate of how much tax they might owe as the system is updated, rather than waiting until the end of the tax year.


More on HMRCs Income tax pilot

MTD for Income Tax Deadline April 2020

Stay up to date

HMRC are still in consultation processes with thought leaders in the industry around MTD for Income Tax. We will keep you informed with Income Tax developments as they unfold.


An introduction to quarterly reporting under MTD

An introduction to quarterly reporting under MTD

This article explains what quarterly reporting under MTD entails. Now's the time to decide how you and your clients will divide new roles and responsibilities.


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Client complexity under MTD

Client complexity under MTD

Under MTD, instead of treating all self-assessment clients in a similar way, practices will have to start thinking in terms of four distinct client categories.


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Digital record keeping

The MTD initiative aims to push the accountancy industry to truly embrace digitalisation, improve efficiency and reduce human error in tax submissions.

HMRC estimates that £9bn is lost in tax due to genuine human errors when preparing tax calculations. One of the ways in which these errors can be eradicated is to improve how efficiently financial records are prepared. Many businesses currently keep manual records of invoices, receipts and cash takings. Digital record keeping will be a fundamental part of reducing the opportunity for error.

Cloud Online Tools

Practice efficiency

Once you have begun to move your manual bookkeeping clients to a digital system, it is a good opportunity to look at your internal processes to see if you can improve how efficiently your practice operates.

The accountant of today needs tools and effective workflows that will transform their services and unlock time for growth and new revenue. One option is to consider online tools to save time and increase efficiency.


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Spreadsheets and MTD

A key component of MTD is digital record keeping and migrating businesses and individuals over to using bookkeeping services to improve the accuracy of their records. Where does that leave us with spreadsheets?

In July 2018, HMRC released its final addendum to the VAT notice which states that spreadsheets can continue to be used. Spreadsheets are for the time being a form of digital record keeping. The continued use of spreadsheets should allow the transition to MTD to be more straightforward, with advisors able to maintain their current VAT calculations they have today within spreadsheets. HMRCs final VAT notice is a valuable resource to refer to. Click here to view the notice.


Find out more

Digital Data

Get the latest on digital record keeping

Keep up to date with the latest developments on digital record keeping as you prepare for MTD.


MTD Webinar

What you need to know about 'digital record keeping' under MTD

What is digital record keeping under MTD? Who is responsible for digital record keeping? How do you know whether your clients are already doing it, and what do you need to do to help those who aren’t?


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MTD and Spreadsheets

MTD and spreadsheets - Transition before you transform

Spreadsheets can still play a supporting role for your VAT submission under MTD. Here’s how spreadsheets will help you walk before you run in your programme to make a step-by-step move to digital.


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Best practice

MTD will fundamentally change how your practice operates, how regularly you’ll need to collect data and how you’ll communicate with your clients.

MTD will require a new set of best practices that are MTD compliant which you will need to communicate to your customers. It is an opportunity to automate processes, improve efficiencies as well as grow an advisory offering for your clients.
Develop a communication plan

Develop a communication plan ahead of MTD for VAT

Start your communication plan by segmenting your clients. Start with those who will be impacted by the first phase of MTD.


Download our communications plan

Get prepared

The transition to MTD for VAT will inevitably mean changes to how you and your clients will work together and how you’ll monitor the relevant financial data.

Now that you have a clear vision of what changes you will need to adopt, the time to embrace the changes to MTD for VAT is now. Download this checklist to help you through your programme to digitalisation.


Download checklist & transition plan

Get prepared with our checklist

Stay informed

Part of your preparations for MTD should be taking note of what the industry is doing as they develop their own best practices. We will keep you informed here.


AccountingWeb MTD Webinar

You've done cloud, now what?

Hosted by Tom Herbert, Editor at AccountingWEB, Claire Carter, MD at Wolters Kluwer Tax & Accounting UK & Ireland, is joined by Charlotte Houghton, Partner at Ellacotts & Stacey Morrison, Assistant Manager at Old Mill. This session examines how firms are adapting their cloud services to differentiate themselves.


Watch now

How Ellacotts use CCH OneClick

How Ellacotts use CCH OneClick

Charlotte Houghton, Partner at Ellacotts talks about the benefits they've seen from CCH OneClick, in particular making file sharing much easier through digital data requests, and helping with GDPR compliance.


Watch now

Digital exclusion UK heatmap

What does digital exclusion mean for MTD?

Certain groups could be exempted from the digital aspects of MTD on the grounds of being digitally excluded, but what about those who are merely 'digitally challenged'. Find out how digital exclusion might affect your practice and your clients.


Read all

Latest news and events

From industry news to the latest updates from HMRC, keep up to date on all things Making Tax Digital here.


MTD Webinar

Fact vs fiction, demystifying MTD and VAT

Watch our 1 hour webinar with Phil Thornton, who will bust all the myths around MTD and the new VAT regulations that will come into effect in April 2019.


Register

MTD CCHOneClick Webinar

How to future-proof your practice with CCH OneClick

Watch our 1 hour webinar where you can find out all about our new cloud product, CCH OneClick, and how it will transform the way you work.


On demand Webinar

Download Wolters Kluwer MTD eBook

Get prepared for MTD - download our eBook

Making Tax Digital for VAT will be live from April 2019. Make the most of the opportunity for growth and embrace digitalisation with CCH OneClick.


Download eBook

Making Tax Digital Roadshows

Join one of our half-day MTD Roadshows at 6 locations across the UK this October to help get your practice ready for April 2019. You'll hear insights from our latest thought leadership and see a live demonstration of our new VAT filing solution within CCH OneClick.


Wolters Kluwer MTD Roadshow Event

Making Tax Digital Roadshows

Join one of our half-day MTD Roadshows at 6 locations across the UK this October to help get your practice ready for April 2019. You'll hear insights from our latest thought leadership and see a live demonstration of our new VAT filing solution.


Find out when and where

CCH OneClick Intro Video

How CCH OneClick Supports the move to digitalisation

Built for practices and their clients CCH OneClick is a secure, set of cloud tools accessed in one place, so you can connect, communicate and collaborate – any time, anywhere on any device!


Watch video

Latest news and insight

From industry news to the latest updates from HMRC, keep up to date on all things Making Tax Digital here.

How Wolters Kluwer can help you

Wolters Kluwer is a global leader providing information, software and services to financial services businesses. We are experts at working in complex, compliance-driven environments. For a complete guide to preparing for the launch of MTD for VAT, find all the answers in our eBook.

Download MTD for VAT eBook

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