Making tax digital from April 2019

With effect from 1^st April 2019 HMRC requires that businesses for whom VAT returns are mandatory file their returns in line with the new Making Tax Digital (MTD) requirements. If your taxable turnover is greater than the VAT registration threshold of £85,000 then this will apply to you.

This new regime from HMRC means that you have to both keep records digitally and file tax digitally – no more typing figures directly into HMRC’s online portal!

The new rules apply on your first VAT return period starting on or after 1^st April 2019, so:

If you currently file your returns yourself, it means that you may have to change the way in which you keep your records. If you use common accounting software (such as Freeagent, Xero, Iris, Sage etc.) then the ability to file digitally will be included if not already there – contact us if you need more information. If you keep paper records or use your own spreadsheets, you may need to look at changing to a different method.

If you use SG’s spreadsheet to provide your accounting information then you can carry on using this.

As is common with HMRC, they are proceeding at their own pace. They are issuing information but because they are still developing their systems to cope with MTD, and due to the fact that they are still running pilot schemes, this information is changing and is not complete. One thing that HMRC have made clear though is that the switch to MTD will happen.

This is a huge adjustment for both business and accountants, and we can assure you that this is very much a priority for us. We are working with both HMRC and software providers to ensure that we continue to provide the service you expect, and we will be providing updates as we get more detailed information.

We will also be contacting our clients with further instructions once we have selected our software solution and advising what needs to be done to make this change as straightforward as possible.

If you interested in finding out further details on Making Tax Digital, speak to us on 01962 454084 or send us a message via our website.