The introduction of HMRC’s Making Tax Digital (MTD) for VAT from 1 April 2019 will bring a fundamental change to the way businesses submit their VAT returns. VAT registered businesses with a turnover exceeding the VAT threshold (currently £85,000) will be required to set up a digital tax account and file their quarterly returns online.

There will be a six month deferral period (until 1 October 2019) for businesses with more complex requirements to comply. These include trusts, not-for-profit organisations that are not set up as a company, VAT groups, traders based overseas and those required to make payments on account and annual accounting scheme users.

This tax system changes mean that you will need to keep digital records and file the information to the HMRC using a new MTD system. We will assist you in understanding what needs to be done and keep you informed of all developments in MTD as they happen.

The digitalisation of tax and records is inevitable! This, however, can bring great value to your business as you will often have access to software that allows you to analyse your data and discover trends. You can opt to use specialist software to comply with the MTD requirements and many such software provide facilities that can, upon a couple of clicks, summon detailed report that give valuable insights into your business performance.

We can assist, train and advise on the use of such software! For more information get in touch with our experienced accountants.