NEWS

Making Tax Digital for VAT

Are you ready?

According to latest research from the ICAEW over 40% of businesses that will be affected by Making Tax Digital for VAT from April 2019 are not yet aware of the changes.  The research also revealed a quarter of all businesses are still using a paper-based accounting system, which will not be permissible under the new rules.

From 1 April 2019, MTD for VAT will become compulsory for VAT registered businesses making annual taxable supplies of over £85,000.  Currently, most businesses type the figures for their quarterly VAT return directly into a free form provided on the government’s website.  The new rules will require businesses to keep computerised records and file VAT returns directly from software.

HMRC has launched a major communications campaign to try to build awareness amongst small businesses who will be affected by MTD.  A spokesperson for HMRC commented “We are starting to ramp up communication activity with businesses, initially with information to help them prepare for MTD and later how they can sign-up for the service”.

See HMRC’s guide “Making Tax Digital: how VAT business and other VAT entities can get ready” published 17 September 2018.

If you would like our help in advising you on the best online accounting system for your business and getting you set up, please contact Martin Southern on 023 9248 4356 or email him at mjs@morriscrocker.co.uk

19/09/2018