From 1st April 2019, HMRC will insist that all VAT registered businesses with a VAT turnover of £85,000 or more, must submit their VAT returns in a digital format. This has become known as Making Tax Digital.
Businesses below the VAT threshold – BUT who are VAT registered – do not need to comply yet but are likely to be required to do so from 1st April 2020.
Importantly, digital records of sales and purchases with their VAT calculation will need to be kept using software that is compatible with HMRC systems. There are a number of software packages available, but some examples would be:-
“The majority of these packages work on a subscription basis, depending on your needs,” said Afford Bond Director, Lindsay Beeston, “and we offer live remote support for all our clients. If your current software package is not compatible with MTD, we advise you either upgrade or change to a compatible package, as soon as possible.
“The software above will help you comply with further proposed HMRC changes on quarterly profit reporting and loss calculations. And as HMRC have promised to widen the scope to include income tax from April 2020, it is important that you select a package which fits your business model.
“We can help you with whichever package you choose,” said Lindsay Beeston. “Keeping digital records and providing updates to HMRC directly will help reduce errors, cost, uncertainty and worry. If you’re unsure how to get started with making your tax obligations digital, simply complete the Contact Us form on our website and we’ll contact you to help. We promise we won’t Make Tax Difficult!”