The summer
months are coming to an end as autumn closes in. Everyone is returning from
their summer break, the children will be heading back to school its back to
business.
It’s always
great to plan ahead, so this time we talk about the new Making Tax Digital
(MTD) that HMRC are set to introduce from April 2019, this has been going back
and forth in consultation for some time now, HMRC now have communicated the
requirements.
This will be
mandatory for businesses registered for VAT with a turnover above the VAT
registration threshold of £85,000. Businesses will need to keep VAT records
digitally and their VAT returns using MTD compatible software. This will start
from their first VAT period starting on or after 01 April 2019.
If you
submit a quarterly return for the period 01 March to 31 May 2019 then you will
have to comply with MTD rules for the period starting 01 June 2019. Businesses
under the VAT threshold will not have to operate MTD but can choose to do so
voluntarily, which we would recommend.
Going
forward the use of compatible accounts software will be mandatory. The use of
spreadsheets can no longer be used.
HMRC are
trying to reduce the number of VAT inspection on businesses that are complying
and MTD will make this clearer for all. If you’re struggling and not
understanding what to do and how to be ready for the April 2019 deadline, do
not panic and contact us, as we are always here to help.
