Making Tax Digital (MTD) is a HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.
MTD begins on 1st April 2019 with MTD for VAT. So what does this mean for you?.
If you are a vat registered business above the vat threshold of £85k then yes it will affect you, from April 2019 you will have to keep digital records and submit your VAT returns using compatible software. So no more spreadsheets and filing directly through the HMRC gateway. You will need to be recording your financial information and filing your vat return via a suitable accounts package.
When do you need to act?
Although the date that MTD for vat comes into affect in April 2019, you may need to act sooner. This will depend on a number of factors such as when your financial year end is and when your vat quarter ends.
Need to know more? Feel free to contact one of our client managers to discuss how this affects you and how soon you need to act.