Making tax digital for VAT - 1 month to go....
6th March 2019
The first batch of VAT-registered businesses have less than a month to go until they enter into the Government’s Making Tax Digital (MTD) regime.
All VAT-registered businesses turning over more than £85,000 will be mandated into MTD by 1 October 2019, with the majority of firms adopting the scheme by 1 June 2019. Firms with a VAT return quarter ending on 30 June 2019 will be the first to begin operating under the regime on 1 April 2019.
A month later, VAT-registered business with a return quarter ending on 30 April 2019 will be the second batch of businesses to go through MTD.
Then on 1 June 2019, those with a VAT return quarter ending 31 May 2019 will adopt MTD.
A six-month deferral period for MTD applies to around 40,000 VAT-registered businesses with more complex accounts, such as not-for-profit organisations and local authorities among others.
While submitting VAT returns online every quarter and at year-end is nothing new, using HMRC-approved software is.
MTD is intended to modernise the tax system, and make it easier for businesses and eventually individuals to record and report their tax accurately. If you would like to speak to a member of our team about MTD please contact us on 020 7330 0000.