Making Tax Digital (MTD) represents a major change in the way taxpayers will interact with HMRC. It is part of HMRC’s flagship programme to make the UK one of the most digitally advanced tax collection agencies in the world, and change is already underway.
In July 2017, the government announced a new timetable for MTD for business (MTDfB). This means that as far as businesses are concerned, the first big change in the way they keep records and report to HMRC takes place from 1 April 2019. It will only be mandatory for the VAT regime, and only for businesses whose turnover is over the VAT threshold (currently £85,000).
So, what does this mean for me?
If your business is VAT registered then by April 2019 you will be required to report your VAT return through compatible digital software that features an Application Programme Interface (API) directly with HMRC. Put simply a system that sends data directly to HMRC. There are many products available the market that can do this job, click here to find out our recommendations. At Knill James we can provide support & guidance on the best route to compliance for your business for this major legislative change, don’t worry please get in touch with one of our team members, we’re here to help.
For further information, guidance & useful tools & resources check out HMRC’s website here.