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Will MTD improve accuracy of farm accounts?

Keeping rigorous farm accounts and ensuring that land ownership is totally clear in partnership agreements is paramount. Julie Butler FCA and Lucinda Knighton ACA explain the importance of rigorous financial accounting and the impact of Making Tax Digital for VAT

The historic accounts of farming operations are not prepared simply to calculate income tax liabilities and meet tax compliance responsibilities. With the elderly farming population facing inheritance tax concerns, accounts also have to be submitted with form IHT400 to HMRC for probate purposes. 

They may also be used to decide farm disputes and provide supporting evidence at court. With the increasing digitisation of accounts, compliance with Making Tax Digital (MTD) for VAT is another important development.

MTD and signature approval in the cloud

Many ask the question what difference does MTD for VAT have on the accounts? It is the same issue with the signing of accounts in the cloud via hosted software.

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