Courtesy of HMRC Over the summer HMRC published some changes to Making Tax Digital which have ben warmly received by the businesses and professionals.
The government has said it believes that introducing a new digital tax system is still the right direction to move in. However, it has made amendments to the businesses this impacts and the timescales for change. The amendments to Making Tax Digital now mean:
- Only VAT registered businesses will need to keep digital records and only for VAT purposes;
- They will only need to do so from April 2019;
- Businesses will not be asked to keep digital records or update HMRC quarterly for other taxes until at least April 2020 (the original dates had implementation from April 2019).
What does that mean for your business?
If you are VAT registered then you will need to move to digital record keeping (i.e. use software to record all your VAT invoices and receipts). If you are not VAT registered then digital record keeping is optional and as I mentioned last time it may be still worth joining in the pilots.
If you are VAT registered and do not yet use software to record your VAT information (invoices to customers and from suppliers) you need to start planning for MTD and I will be happy to discuss software options with you which can cost less than you think.
If you are VAT registered and do not yet use software to record your VAT information (invoices to customers and from suppliers) you need to start planning for MTD and I will be happy to discuss software options with you which can cost less than you think.
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