Making Tax Digital

Some Businesses will have to keep digital reords from 1 April 2019.

Making Tax Digital for VAT 

For VAT return periods commencing on or after 1 April 2019, affected businesses will no longer be able to submit their VAT returns through the government gateway. Businesses will be required to use MTD-compatible software which prepares a VAT return and sends it to HMRC. To be MTD-compatible, the software must integrate with HMRC systems to send VAT returns to HMRC, what is known as API-enabled software.

Making Tax Digital (MTD) is undoubtedly the biggest change to the administration of tax since the introduction of PAYE. The Government has its timetable for MTD and the latest plans: 

• VAT registered businesses with taxable turnover above the VAT registration threshold (£85,000) will have to keep digital records from 1 April 2019; 

• For income tax reporting obligations, the self-employed and landlords will not be asked to keep digital records or to update HMRC quarterly, until at least April 2020; 

• Similarly, for corporation tax reporting obligations, implementation will not be until at least April 2020.