In a little over two months many VAT registered businesses with turnover exceeding the £85,000 threshold will be required to file VAT returns digitally. Under Making Tax Digital (MTD) businesses will be required to use software to keep accounting records and file VAT returns to meet the new requirements.
From 1 April 2019, VAT registered businesses with a turnover exceeding the £85,000 VAT threshold will be required to file VAT returns through Making Tax Digital compliant software and not via the current HMRC portal.
In a little under three months all businesses, with a taxable turnover exceeding £85,000, that file VAT returns will have no choice but to file those returns online and through dedicated accountancy software.
From April 2019, businesses and landlords with turnover above the VAT threshold (£85,000) will be required to keep accounting records digitally, and file their VAT returns to HMRC through a MTD compliant digital platform.
In this video, Emma Chesson, Head of Online Services, explains what MTD is, why it needs to be taken seriously, how it may impact you and your business and what plans need to be put in place now.
With just over four months to go until Making Tax Digital (MTD) comes into force, published statistics* reveal that over 40% of businesses that will be affected by MTD for VAT are not yet aware that this will be the case. Over the course of these remaining months, HMRC will contact businesses directly about the switch to MTD, but this leaves little manoeuvrability for businesses who have so far avoided planning, to get prepared and get on board.
Read more below and also view our new MTD video here to find out what plans need to be in place...
By now you should be aware that Making Tax Digital (MTD) is arriving in April 2019. This is a HMRC initiative designed to implement a fully digital tax system which will be effective, efficient and easier for UK taxpayers.
HMRC are focused on an ambition to ‘become one of the most digitally advanced tax administrations in the world’ and with a statement like that, additional compliance and headaches are likely to follow, whatever the size and sector your business operates in.