From 1st April 2019 all businesses whose taxable turnover exceeds the VAT registration threshold of £85,000 will have to keep digital records and submit VAT returns using MTD compatible software.
What is Making Tax Digital?
Making Tax Digital (MTD) represents a major change in the way taxpayers, the self-employed and small businesses report and pay their taxes. The intention is to make it easier for businesses to understand their tax requirements. Businesses will be given their own digital tax account, and from April 2020 small businesses will have to report tax quarterly to replace the annual tax return.
Chris Wallace, Managing Director, Visionary Accountants, St Albans, Hertfordshire said:
‘Due to the difficulties surrounding the introduction of MTD the government has delayed quarterly reporting until April 2020. However, if you are a business registered for VAT whose taxable turnover exceeds the VAT registration threshold you will be in the first group to be impacted by MTD changes. These changes are mandatory so we are now working with our clients to identify any businesses that will be affected by the new legislation. The Visionary accountancy team will ensure your business is fully prepared for MTD as we use compatible software such as xero and sage to keep digital records.’
Chris Wallace, Managing Director, Visionary Accountants, St Albans, Hertfordshire continued:
‘The Visionary team has been monitoring the MTD changes. As early as 2017 we ran a client seminar to make our clients aware of MTD, and discuss how it would affect them. Despite the delays we think it’s still really important that all our clients consider how MTD will impact them and review the way they keep accounting records and record tax. If your business wants to find out more about MTD and how you should prepare call us on 01727 730550. We offer a free initial consultation and can offer you tax planning advice too.’