From 1 April 2019, businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records for VAT purposes and provide this information to HMRC using compatible software. The requirements to comply with MTD will remain even if the business turnover subsequently falls below the VAT threshold.
Who will be affected
MTD will require the majority of VAT-registered with turnover above the £85,000 VAT threshold to be compliant with MTD from April – which is why it is important to start planning now.
Making Tax Digital advice
From April 2019, businesses will need to submit VAT returns on a quarterly basis using a ‘designated cloud software package’. This is the first stage in the implementation of MTD, which is intended to take the filing of most taxes online in the coming years.
If you need Making Tax Digital advice or help with cloud accounting, look no further.
How to Prepare Your Business for Making Tax Digital
Cloud accounting support
Our cloud software accountants already support clients who use Xero, Sage One and QuickBooks – and we want to help you too.
Cloud accounting packages can ‘future-proof’ your business in readiness for the changing face of Making Tax Digital. Xero, Sage One and QuickBooks accountancy packages also enable you to share financial information in real time with our team and quickly produce bills and invoices.
Keeping digital records and making quarterly updates will not be made mandatory for taxes other than VAT before April 2020 at the earliest. This timetable differs drastically from the original system proposed by the Government and restricts the number of businesses immediately affected by the MTD regime.
Nevertheless, businesses do need to be prepared – which means seeking out cloud accounting and Making Tax Digital advice sooner rather than later.
Contact us today to find out how we can save your business time and money, while making the transition to Making Tax Digital for VAT as stress-free as possible.