Making Tax Digital is now here to stay
The Making Tax Digital (MTD) programme has now become law. With effect 1 April 1.2 million VAT registered businesses earning over £85,000 are required to keep their records digitally and submit their VAT Returns beginning on or after 1 April 2019 via MTD compliant software.
For businesses that haven’t signed up yet, don’t panic! It is important to sign up at the correct time to ensure that you can continue to complete your non-MTD VAT returns without the requirement of MTD compliant software. You should complete your final non-MTD VAT return before signing up to MTD. Once you are ready to sign up to MTD you must complete the online HMRC form, which you can access here.
HMRC stated that they recognise businesses will require time to become familiarised with the new requirements. So, during the first year of MTD for VAT, HMRC will take a soft approach to penalties by not issuing filing or record keeping penalties where businesses are doing their best to comply.
HMRC have said almost 100,000 businesses have signed up to the new service and a further 4,000 businesses are signing up to MTD every day.
At this time, Making Tax Digital is only applied for VAT purposes. The government announced in the Spring Statement that their focus will be on supporting businesses to transition and they will therefore not be mandating MTD for any new taxes in 2020.
Kirk Newsholme Solution
At Kirk Newsholme, our accountants are experienced in many cloud accounting software solutions and already support clients who use Sage, Xero, FreeAgent and QuickBooks – and we want to help you too.
Cloud accounting packages can ‘future-proof’ your business in readiness for the changing face of Making Tax Digital. Cloud accountancy packages also enable you to share financial information in real time with our team and quickly produce bills and invoices.
However, we understand that not everyone may be in a position to make the transition to a Cloud based solution in time for the April 2019 deadline.
At Kirk Newsholme, we can help you bridge the gap by offering a temporary solution until you are ready to go digital. Using our in-house HMRC compatible software we can submit your VAT Return to HMRC on your behalf.
If you would like further information about MTD or our submission service please contact Clare Thomas on 0113 2044216 or email at firstname.lastname@example.org.