The best resources for charities on the new digital tax rules

The Making Tax Digital scheme will soon be mandatory for all organisations that process tax – here’s where charities can go to find out all the details and comply.

Chloe Green | 3rd Sep 19
Image of a person dealing with tax figures on a computer

Watch our free Making Tax Digital webinar here in partnership with Oracle Netsuite

From October 1st this year, tax is going digital for all charities. The Government is enforcing major new rules about how organisations process and submit tax and payments, with a strong emphasis on digital processes and tools.

The scheme is called Making Tax Digital, and it will be mandatory to comply for any organisation that deals with tax, as we explained in our recent article. The rules will require charities to submit their tax returns and payments online while also keeping digital records of their taxes, and there are specific rules around the software they will need to use.

It might sound like a time and money sink, but failure to comply to the rules and update their systems for processing tax and payments will mean organisations are simply unable to file their tax, and won’t be within the law.

Here are five key resources for charities to get started making the changes.


1- NetSuite and Charity Digital News webinar – Making Tax Digital

We’ve teamed up with cloud experts Oracle NetSuite on this free webinar that is specifically catered for charities. It’s available to watch any time and includes a clear explanation of why Making Tax Digital is happening and the exact changes organisations will have to make under the intiative – definitely worth a listen.

You can also hear from accounting advisor Grant Thornton about charities who have already started to make the switch, what their unique challenges were as non-profits, and where to find out more about handling the changes cost-effectively.


2- HMRC: Making MTD easy – Step by step guide

Once you have a good grasp of the changes and how they affect you, on the HMRC website you’ll find a simplified guide to the steps to follow, including how to search for software, where to register online and how to authorise your software.


3- HMRC: Where to find compatible software 

HMRC provides a list of officially approved software that you will need to use under the new rules. You can search for it here, according to your specific requirements.

You may also want to check the Charity Digital Exchange to see if any of the software is offered at a discount or as a donation for charities.



4 – HMRC guidance on correcting errors

Under the new Making Tax Digital rules, there are a few differences around correcting any errors when submitting tax digitally. Find out what you need to know here.


5 – HMRC Charity helpline 

Should you find yourself stuck at any point even after going through the resources above, do not despair – the HMRC website offers a helpline via webchat and phone where you can talk to the experts about VAT, Making Tax Digital for VAT or using VAT online services.


Click here to view the on-demand charity webinar: “Making Tax Digital: Take your first steps to becoming HMRC compliant”