Making Tax Digital – A Summary
The government has now updated their plans for businesses to report financial data to HMRC on a quarterly basis.
The latest publications can be found at:
From April 2019, HM Revenue and Customs (HMRC) will make fundamental changes to the way the tax system works.
Ultimately HMRC plan to move towards a fully digital tax system.
WHAT DO THESE CHANGES MEAN FOR YOU?
These changes will be phased in from April 2019. Making Tax Digital - MTD starts with MTD VAT.
MTD VAT will apply to businesses with turnover above the VAT registration threshold (currently £85,000).
Businesses will be expected to use software to submit the VAT return data digitally, every quarter, directly into HMRC systems.
The current HMRC VAT portal will be removed. You will have to file the diata in a digital format that is acceptable to HMRC.
HMRC have published a list of software which they will recognise.
Here at Advoco we are working towards providing you with solutions that are cost effective whilst trying to make this process as advantageous as possible for you and your business.