Making Tax Digital (MTD) will be mandatory for VAT reporting from April 2019. VAT registered businesses with turnover above the VAT threshold will be required to maintain digital accounting records and use MTD compliant software to file their VAT returns, from the first VAT quarter starting on or after 1 April 2019. The current online VAT return will not be an option for such businesses after that date. Businesses with turnover below the VAT threshold who have registered voluntarily for VAT will not be required to comply with MTD requirements but can do so voluntarily. These businesses will be able to continue to use HMRC’s online portal.
Other taxes
The government has given an undertaking that MTD (electronic record keeping and quarterly reporting) will not be made mandatory for other taxes until the system is working well and not until April 2020 at the earliest.
Pilots
The pilot of MTD for VAT will start in April 2018. We expect the government will make the final detailed requirements available to the software providers by April 2018 to allow the pilot to run as effectively as possible. Whilst the pilot is in progress we will be keeping well informed of the developments and working alongside the software providers to provide us with all the information to support our clients.
However you currently keep your accounting records, we will be pleased to discuss your options with you and how you could benefit from better record keeping and financial information. Please get in touch for an informal chat our contact details can be found here here
