Making Tax Digital
Summer is over, kids are back to school and there are 200 days until the Governments Making Tax Digital (MTD) plans come into force.
What does MTD mean for you as a business and what do you need to do as a business owner to make sure you comply?
It was announced by the Government that from 1 April 2019 all businesses registered for VAT with a turnover above the VAT registration threshold of £85,000 must keep their VAT records digitally and submit their VAT returns using an MTD compatible software package.
Businesses who are VAT registered with a turnover below the VAT threshold will not be required to keep their records digitally nor submit their return using an MTD compatible software package, but we recommend that you do so. At some point HMRC will expect you to comply, so getting into a good habit beforehand will help you in the long run.
As a guide, if you have a VAT quarter ending 31 May 2019, you will not need to comply until the quarter beginning 1 June 2019.
The use of spreadsheets to complete your return will no longer be accepted, but we are conscious that as a business owner, learning how to keep digital records will take you away from your business and earning money. Seamount Business Services offers a full MTD compliant solution on behalf of all our VAT registered clients, whether or not they meet the MTD required criteria.
If you’re struggling to get your head around your obligations, please do not hesitate to contact us for a free consultation.
Useful link: HMRC VAT Notice 700/22: Making Tax Digital for VAT.