Making Tax Digital (MTD) is an initiative designed by HMRC to make sure the UK tax system is effective, efficient and easier for taxpayers.
All UK businesses that are VAT registered and above the £85,000 VAT threshold will be required to keep their records digitally and submit VAT returns to HMRC using MTD-compatible software. This means that many businesses will need to decide about their accounting software soon to avoid facing the complication of changing part way through their accounting year.
When does it start? MTD for VAT is due to commence for VAT periods starting on or after 1 April 2019. So, all businesses will need to comply with the new process from this date onwards.
Am I compliant? If MTD applies to you, then you will need to ensure that your accounting software is compliant. HMRC have released a list of compliant software at www.gov.uk.
Next steps? Shorts offer a free MTD Ready Check to help you understand how it affects your business. If you would like an MTD Ready Check contact us by email on MTD@shorts.uk.com or by phone on 0114 2671617.
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Alicia Williams
Alicia is Director of the Genus team at Shorts, a chartered certified accountant and Xero specialist.
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