The government's plan for Making Tax Digital (MTD) has recently been activated since its announcement in 2015. As of April 1st 2019, we have officially entered the first stage of MTD
It is now law that all VAT registered businesses with a turnover above the VAT threshold must submit their records digitally.
In summary, this means that all VAT registered businesses with turnover above the VAT threshold have to maintain digital records and send their VAT information to HMRC using thirdparty commercial software. For businesses registered for VAT but with turnover below the VAT threshold, they can opt in and file their VAT information via MTD, but it is not mandatory.
Navigating these changes can seem like a minefield at times, but each part of MTD has been designed to simplify the whole process, making it smoother to complete, and making it significantly harder to make mistakes when submitting tax, the likes of which cost the exchequer upwards of nine billion pound each year.
In order to make the transition as smooth as possible, HM Revenue and Customs have put certain measures into place, and there are certain things that you need to be aware of, as we navigate the new digital age of tax.
Foremost, it’s important to remember that the new measures are not a “cliff-edge” deadline. The first returns under the new system won’t be due until August for the majority of businesses, so there is still time to seek advice and support. Equally, there are a huge number of materials available online, including easy-touse guides and advice leaflets, all published by HRMC.
If you still find yourself struggling, you're not alone. At a time where MTD is still relatively new ground for everybody, don't panic, our team are on hand to help make this a smooth ride for you and your business.