Pegasus Opera 3 ready for
Making Tax Digital
Making Tax Digital (MTD) is a government initiative designed to transform the tax system and to end the use of the tax return for a great many taxpayers. It is intended to make it easier for businesses and individuals to maintain records and to get their tax correct. Under MTD, businesses will be required to keep records digitally and make a quarterly return of data to HMRC.
What is Making Tax Digital?
Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs - meaning the end of the annual tax return for millions. HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world, modernising the tax system to make it more effective, more efficient and easier for customers to comply.
When will this affect your business?
MTD is set to come into force in April 2019 and will apply for businesses with annual sales over the VAT threshold of £85,000. If MTD applies to you, you’ll have to use digital tools to keep records of your income and costs. Currently, you may use the free Government Gateway for entering your quarterly tax return, but this is due to close and from April 2019 you'll need to use software to submit your VAT returns electronically. There will be no free software for Making Tax Digital for VAT. HMRC is working closely with software providers (such as Pegasus) to ensure a range of suitable products will be available. From April 2020, Corporation Tax is also expected to fall into the Digital Tax requirements.
What does this mean for Opera 3 users?
We can confirm that Pegasus Opera 3 software is fully HMRC-accredited and will integrate with the new Tax Digital API to comply with the new MTD requirements. The new MTD functionality will be available within Opera 3 versions expected to be released in early 2019. If you are a client of Intsys, you will be kept informed in our Support Bulletins and Support Portal. If you would like to subscribe to our newsletter please click here.