||Corporation / income tax
||Compulsory online filing of all VAT returns
||Sole traders and partnerships with income £10k - £83k
HMRC is phasing in its landmark Making Tax Digital (MTD) regime, which will ultimately require taxpayers to move to a fully digital tax system. Regulations have now been issued which set out the requirements for MTD for VAT. Under the new rules, businesses with a turnover above the VAT threshold (currently £85,000) must keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software.
The new rules have effect from 1 April 2019, where a taxpayer has a ‘prescribed accounting period’ which begins on that date, and otherwise from the first day of a taxpayer’s first prescribed accounting period beginning after 1 April 2019.
HMRC is piloting MTD for VAT during 2018, ahead of its introduction in April 2019.
Keeping digital records and making quarterly updates will not be mandatory for taxes other than VAT before April 2020, although businesses below the VAT threshold which have voluntarily registered for VAT can opt to join the scheme.
This represents a major change for many businesses who will need to consider:
- What software is right for my organisation?
- Are we using the most up to date version of our software?
- Who will be responsible for the bookkeeping?
- Who will make the returns to HMRC?
Wenn Townsend can assist in all these areas. Our outsourced bookkeeping department is experienced at transferring paper-based bookkeeping records on to a computerised system. They can assist you in making the transition or you can outsource the function to us in entirety and never worry about your bookkeeping again.