Are you ready to make your tax digital?

In 2017, the Government announced that Making Tax Digital – its scheme to move all tax systems to a digital platform – will start in April 2019 for VAT for businesses with turnover above the VAT threshold (£85,000). The scheme won’t be implemented until at least 2020 for all other businesses.

In a nutshell, this means that only businesses with a turnover above the VAT threshold will be required to keep digital records, and initially only for VAT purposes, from April 2019.

Businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020. VAT returns will need to be submitted directly from online software or Excel, using API software, meaning there will be no manual intervention when submitting returns.

For businesses and landlords with a turnover below the VAT threshold, it means they will be able to choose when to move to the new digital system and they will have at least two years to adapt to the changes before being asked to keep digital records for other taxes.

As VAT already requires quarterly returns, no business will need to provide information to HMRC more regularly during this initial phase than they do now.

This spring, HMRC has started to live pilot Making Tax Digital for Businesses (also known as MTDfB) for VAT, and has successfully submitted the first test returns. This ensures over a year of testing is done before any businesses are required to use the system.

To ensure your company is up to speed, we recommend starting the transition from manual books and Excel to online software, such as Xero or Quickbooks, as soon as you can. If this is something you’d like to consider, the team at ADM Accountancy will be happy to discuss which software is best for your business.

 

Contact ADM on 01242 679767 or email andrew@admaccountancy.co.uk

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The information contained in this website is for general information purposes only. The information is provided by ADM Accountancy Services Ltd and while we endeavour to keep the information up to date and correct...
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ADM Accountancy Services Ltd
Registered in England and Wales.
Registration Number: 06912489

Contact Info:

Phone: 01242 679 767
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Unit 5, Tarlings Yard, Church Road
Bishops Cleeve, Cheltenham
Gloucestershire, GL52 8RN
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