Making Tax Digital (MTD) is an upcoming piece of legislation from HMRC where the majority of businesses, including sole traders, will have to send quarterly updates to HMRC of their income and expenditure via online accounting software’s such as Quickbooks and KashFlow.
For businesses registered for VAT with a taxable turnover above the VAT registration threshold of £85,000 will need to keep VAT records digitally and file their VAT returns using MTD compatible software. This will start from their first VAT period starting on or after 1 April 2019.
Businesses with a taxable turnover below the VAT threshold will not have to operate MTD, but can still choose to do so voluntarily. Those earning over £10,000 annually but are under the VAT threshold will join MTD from 1st April 2020.
With effect from 1 April 2019 the way in which you submit your VAT to HMRC is changing.
You will no longer be able to use the Government Gateway and MUST submit your returns using MTD compliant software.
You will need to take action whichever of the 2 categories relate to you:
- Currently using software?
Your existing software may not be fully compliant. Please check with either the provider or ourselves before 1 April 2019 in case you need to update or change your software.
- Currently using paper or Excel spreadsheets?
If you are currently using paper records or Excel spreadsheets you will have to begin using MTD compliant software.Whichever category you are in we are here to help you either with the selection of the right software or with the reassurance that what you are currently using will be compliant after 1 April 2019.
Doing nothing is not an option – call us so we can help you ensure you are fully compliant.