HM Revenue and Customs (HMRC) are bringing tax into the digital age with its ‘Making Tax Digital’ scheme. This means that nearly every UK business now has to submit VAT returns using compliant online accounting software.
From 1 April 2019 businesses with a turnover above the VAT threshold (currently £85,000) now have to keep digital records in relation to their VAT compliance. Business owners can no longer be able to log into the HMRC website and type in their VAT figures. Instead they must move to electronic uploads from their accounting software package.
In essence, ‘Making Tax Digital’ is designed to get all tax records online and up to date, so they are accessible to both taxpayers and HMRC. Quarterly submissions of accounts will then be made to HMRC to give a snapshot of business income and expenses.
Businesses with a turnover above the VAT threshold will be mandated to use making tax digital for business (MTDfB) system from April 2019 to meet their VAT obligations. Businesses with a turnover below the VAT threshold will not be required to use MTDfB from April 2019 but can choose to do so.
The scope of MTDfB will not be widened before the system has been shown to work well and not before April 2020 at the earliest.
The services and information we provide includes the following:
- Timetable of actions required for each type of business
- Setting up your digital account
- Advice and training on software, including spreadsheets
- Managing your digital account
- Compliance with the new requirements
FREE No-Obligation Meeting
Please complete the form below: