Making Tax Digital or More To Do!!

You may be aware of the government’s new plans to “make it easier for individuals and businesses to get their tax right and keep on top of their affairs”, if you have not yet heard and you have a VAT registered business with a taxable income of over £85,000 you need to start planning how you are going to comply with this new legislation when it comes into force.

From April 2019 all VAT registered businesses whose turnover exceeds £85,000 will no longer be able to use the HMRC website to submit their VAT return. Your records must be kept digitally and you must file your VAT return through software compatible with MTD.

If your turnover is, at present, below £85,000 but then you exceed the threshold after April 2019 you must be MTD compliant for the next VAT period commencing after you exceed £85,000.

One point to consider is making sure your VAT quarters are in sync with your year end as other taxes will follow, possibly as early as April 2020, when a quarterly profit and loss account will have to be submitted!