We are sure that you have all heard the term ‘Making Tax Digital’ (MTD).
MTD is a government initiative to transform the current tax system and make it more effective, more efficient and overall simpler for consumers to use and understand.
The first stage of MTD will affect VAT registered businesses, who registered because they were over the VAT registration limit, rather than those who voluntarily registered. The changes will come into effect on 1 April 2019 and will affect your first VAT return starting after this date.
From 1 April 2019 all VAT registered businesses under MTD will have to keep digital records and submit VAT returns using compatible software. The HMRC gateway will no longer be able to be used for this purpose and spreadsheets may not provide the information that will be required.
We will be keeping an eye on how this will affect clients as the rules evolve and will contact everyone individually to discuss their requirements and concerns. If you are not a current client, but would like assistance, please do get in touch.