After hearing about Making Tax Digital (MTD) time and time again, you may have decided it’s time to make the switchover to digital tax returns. Even though the final deadline for MTD isn’t until 2020, you can still get started straight away if you need to.
The first step of the MTD process is already available, you can already sign-up for an HMRC online account and register for digital tax returns.
If you’re fed up of fussing with paper and printed accounts, we’ll discuss exactly what’s needed in order to set up your online account and how your business can start completing tax return digitally.
What information will you need to set up your HMRC online account?
Before you sit down at your computer to register your account, it’s a good idea to make sure you have these documents to hand:
- Employer’s PAYE Reference number
- Accounts Office Reference number
You won’t be able to open your account without these, so make sure you have them with you to save yourself some time and make the process of signing up for MTD as smooth and efficient as possible.
How do you register for an account?
To register your online account, head to https://online.hmrc.gov.uk/registration, once you land on the page, you’ll be asked to choose what type of account you would like to create.
You can choose from any of the below account types:
- Individual (for personal transactions or self-employment)
- Organisation (for employers, contractors, partnerships, charities, community amateur sports club, a LTD company or a trust)
- Agent (if you are using HMRC online on behalf of a client)
- Pensions (for use if you are using HMRC Online as a pension scheme admin or pension scheme practitioner)
You’ll then be asked to enter your full name and choose an email address to associate with the account.
From then on you’ll be asked for information on your business or organisation and you’ll be required to provide the information stated above.
You’ll be given a user ID and a password and will be sent a letter through the post to confirm your registration, as well as an email confirmation.
How to start using your online account
Once you’ve received your login details and everything has been set up from HMRC’s side, you’ll be able to see all of your tax information.
Your home screen will show you all the information to do with your account, such as:
- What type of account you have
- Any notifications from HMRC
- Your unique taxpayer reference number
- The date your next tax return is due
- Whether you owe any tax
- Whether you are owed a refund for overpayment
- Messages from HMRC
- The ability to track your forms
If the thought of setting up your online account yourself is daunting, why not get in touch with us and find out how our accountants can not only help you manage your accounts, but also help you prepare for Making Tax Digital.