Making Tax Digital
You will have heard rumblings and rumours about “Making Tax Digital” (MTD) for quite a while now, but the guidance and rules have always been at best vague, I have had clients asking about it and my response for a while has been .. hold on .. let’s wait and see.
Why, you might ask .. well ...
- More Brexit
- HMRC not being able to organise a drinking session in a brewery (yes, I did just say that!)
I always had a nagging feeling at the back of my mind that it was a lot of talk and that nothing was actually set up to make it work. Yes, the software companies were busy putting plans into place, but HMRC and their systems just weren’t going to manage and cope.
The announcement has been made .. Making Tax Digital is being delayed and drastically reduced (happy dance time) .. so now, I am more happy to tell you about it!
· For businesses with turnover above the VAT threshold (currently £85k), they will be required to keep digital records for VAT purposes and to file quarterly with Making Tax Digital compliant software from April 2019
· These businesses will not be asked to keep digital records or update HMRC quarterly for other taxes until at least 2020.
· Businesses below the VAT threshold won’t be asked to keep digital records or update HMRC quarterly for other taxes until at least 2020 and at the moment, this is likely to be on a voluntary basis (this could of course change!).
As with everything, this is subject to change but this watered-down version of Making Tax Digital is definitely less onerous and less scary.
If you are a client and I help you with you VAT already then don’t panic .. it will all be sorted for you. If you aren’t and want to talk to me then please get in touch.