Believe it or not the ICAEW’s latest statistics show that 82% of businesses are still logging onto the HMRC gateway to complete their VAT returns with the remainder filing directly from software.
More worryingly around half of the businesses surveyed by the ICAEW had no idea this was changing.
From 1 April 2019 businesses caught by the rules will be required to:
The burning question therefore is, who and what does this apply to?
Once your turnover in the preceding 4 quarters exceeds the £85,000 threshold then you need to join the scheme and if your turnover falls below the limit you don’t exit the scheme. HMRC have prepared a list of software what is compatible with the new regulations:
https://www.gov.uk/government/publications/software-suppliers-supporting-making-tax-digital-for-vat/software-suppliers-supporting-making-tax-digital-for-vat
Income tax and Corporation tax will follow in a year or two’s time.
I’ve prepared a short video to help you prepare... See Below.
More worryingly around half of the businesses surveyed by the ICAEW had no idea this was changing.
From 1 April 2019 businesses caught by the rules will be required to:
- Maintain their accounting records digitally in a software product or spreadsheet, and
- Submit their VAT returns to HMRC using functional compatible software – i.e. not the gateway
The burning question therefore is, who and what does this apply to?
- Only VAT registered businesses;
- With turnover of more than £85,000 (so if you voluntarily registered this may not apply but you can elect to join in the scheme);
- Your first VAT return period starting on or after 1 April 2019.
Once your turnover in the preceding 4 quarters exceeds the £85,000 threshold then you need to join the scheme and if your turnover falls below the limit you don’t exit the scheme. HMRC have prepared a list of software what is compatible with the new regulations:
https://www.gov.uk/government/publications/software-suppliers-supporting-making-tax-digital-for-vat/software-suppliers-supporting-making-tax-digital-for-vat
Income tax and Corporation tax will follow in a year or two’s time.
I’ve prepared a short video to help you prepare... See Below.
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