How does Making Tax Digital for VAT affect you?

We’re only a couple of months now from this becoming a reality, it’s been talked about for a long time so let’s make sure you’re prepared.

From 1 April 2019 if your business has a taxable turnover above £85,000 you have to keep digital VAT records and submit your VAT return digitally through MTD compatible software. The rules apply to your first VAT return, starting after 1 April 2019 and therefore we highly recommend getting a system lined up if you haven’t already.

If you don’t already use a software package like this we recommend Xero but there is a list of all the HMRC approved softwares online here.

MTD won’t change when you need to send the information to HMRC it is more concerned with the record keeping which surrounds it and the digital links which eliminate the scope for error.

Even if your turnover isn’t over £85,000 you can still join the service voluntarily to benefit from going digital, there will be help for any business that may need additional support switching to digital.

If you need any advice or guidance, get in touch today.

 

As found on Youtube

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