Update on Making Tax Digital for VAT
The vast majority of VAT registered businesses with turnover exceeding £85,000 should be ‘Making Tax Digital’ from 1 April 2019; despite a call from The House of Lords and professional bodies to postpone.
MTD will apply from the first VAT period starting on or after 1 April 2019. Thereafter, VAT registered businesses must maintain their accounting records and file their VAT Returns using MTD compliant software.
A handful of more complex entities such as trusts, not for profit businesses, VAT groups, VAT annual accounting scheme users, overseas traders and some public bodies have been given a six month reprieve.
Voluntarily VAT registered businesses (turnover < £85,000) do not have to comply with MTD at present.
1 April 2019 is only weeks away.
- Are you keeping your accounting records electronically?
- Do you have a functional compatible software program which will work with HMRC’s Application Programme Interface (API) to submit your information to HMRC?
Making Tax Digital for Income Tax and Corporation Tax is expected to be implemented around 1 April 2020.
Leaving your Tax Return and getting ready for MTD to the eleventh hour is stressful.
Call Chloe or Sarah at CKLG on 01223 810100 for friendly help and support.