From 1 April 2019, businesses with a turnover above the VAT threshold (currently £85,000) now 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 requires the majority of VAT-registered businesses with a turnover above the £85,000 VAT threshold to be compliant with MTD.
From April 2019, businesses 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
This accreditation recognises our expertise in providing advice and support on this platform, which we feel may be the ideal solution for you. The packages also enable you to share financial information in real time with our team and quickly produce bills and invoices.
While we predominantly work with Xero we can also support businesses using existing systems developed by Sage One and QuickBooks.
Keeping digital records and making quarterly updates will not be made mandatory for taxes other than VAT before April 2021 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.