Deadlines for Complying with MTD
April 2020 – VAT with Turnover > £85,000
For Vat Registered Businesses with a Turnover greater than £85,000. This part of MTD is already live.
April 2022 – All Remaining VAT Registered Businesses.
For all remaining Vat Registered Businesses (approximately 700,000 businesses). The Chancellor announced in the budget (March 2021) that the Government will soon be bringing forward primary legislation to deliver on this commitment.
How much will it cost?
Customers automatically get the Rhino FREE100 Edition when they register a new Rhino Account. The FREE100 Edition permits customers to record up to 100 Contacts, 100 Invoices, 100 Expenses and 100mb of Document Storage for free.
If customers exceed any of those limits, they can upgrade to the paid Edition from as little as £12.00 per month.
How does it work?
Customers must maintain electronic records of their Income and expenses in an MTD compatible App like Rhino.
Customers then connect Rhino to the MTD Tax System – this is a one-off exercise and usually takes less than two minutes to complete this step.
Once connected, Rhino will retrieve your quarterly Vat Submission Dates (for VAT) or your quarterly Obligation Dates (for Income Tax).
To complete a quarterly submission, Rhino will summarise and update the MTD System with just a few clicks.
What help is available?
We provide all the help you need to get up and running quickly with MTD.
Do it yourself option.
Customers can register for a free trial and follow the simple video tutorials at the top of each screen.
If you would like assistance.
Customers can complete an enquiry form.
The Rhino support team will create an MTD Account for you and we will schedule a short online call to show you how to use the App.
Please refer to the MTD VAT and MTD INCOME TAX Menu link on the Rhino web site for more details including sample video tutorials.
When should I start?
Although Making Tax Digital is relatively straight forward, it will impact all small businesses across the UK.
The process of recording your Income and Expenses electronically account for approximately 90% of the effort required to comply with MTD. You can start doing this today and it may be wise to avoid leaving it to the last minute.
The remaining 10% effort of the process will be required when you are mandated by law to update the HMRC MTD system. We emphasise that the MTD System for both VAT and INCOME TAX is already live and you can start complying with MTD when you are ready.
A Burden or an Opportunity?
Most customers wonder what all the fuss was about once you are up and running. Imagine submitting your MTD VAT Return with a few click within Rhino and not having to log into the HMRC Web Site.
The same applies to MTD INCOME TAX where you can submit your Sales and Expenses each quarter and retrieve a tax estimate at any time. And of course the biggest benefit is not having to complete the dreaded Online Self Assessment Tax Form on the HMRC website.
There are so many other benefits. Going digital will reduce administration, reduce paperwork and the stress of completing last minute Tax and Year-End Accounts. Rather than Accountants charging you for doing data entry, your Accountant will be able to work with you to provide quality advice to help you grow your businesses. On a personal note, customers like the way Rhino frees up their personal time enabling them to focus on the enjoyable aspects of running your own business.