Making Tax Digital, will it impact you and your business?

If you are not already aware, HMRC is Making Tax Digital from April 2019.

In the first instance it will only cover VAT as other taxes such as self-assessment and corporation tax have been pushed back to April 2020, at the earliest.

As a business, don’t be misled in thinking that you currently file your VAT returns digitally using the HMRC online portal by inputting your calculated VAT figures.

From April 2019, HMRC won’t accept this and any VAT registered business with turnover above the VAT threshold of £85,000 will have to submit their VAT returns using the new Making Tax Digital compliant software.

Exemptions from these changes are very limited, but if your business is run by a practising member of a religious society has beliefs which are incompatible with using electronic communications these will be exempt from using Making Tax Digital for VAT.

Other potential exemptions are on the grounds of age, disability or remoteness of location.

Please don’t be worried about these changes.

Digital software can be positive for your business and can lead to efficiencies and provide you with regular financial information to assist you in running your business.

Garbutt + Elliott can assist you with these upcoming changes by getting your business set up and compliant with the new regime.

Check now and if you do not know if your current record keeping or software is Making Tax Digital compliant, then please do not hesitate to contact us.

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