As part of its ‘Making Tax Digital’ (MTD) initiative, HMRC is introducing a new digital tax system for businesses.
The scope and timetable are not yet fully defined – they keep changing – but the current planned date of implementation is April 2019.
From that date, VAT-registered businesses with a turnover greater than the VAT threshold (£85k) will be required to:
- Maintain their records digitally (e.g. by using bookkeeping software such as Xero, Sage or Quickbooks); and
- Submit quarterly VAT returns to HMRC from their digital system
At a later date – not before April 2020 – those businesses will then be required to report other tax-related information (including income and expenditure) on a quarterly basis, from their digital system.
Many businesses above the VAT threshold already submit quarterly VAT returns. So for them, the main change is that they must use appropriate software to maintain and report that VAT information.
April 2019 is fast approaching and – as you know – it takes time to introduce new systems and ways of working into a business.
So it’s very important to act now – to put things in place to ensure that you’re compliant with the new regulations.
For more information on how to prepare for Making Tax Digital
call Johnston Kennedy on +44 (0) 28 9045 6333
or email email@example.com
This blog post provides general information only and may not apply to your particular circumstances.