Making Tax Digital (MTD) starts from April 2019 for all VAT-registered businesses with a taxable turnover above the VAT threshold limit of £85,000.
Businesses with a turnover below the VAT threshold will not have to operate Making Tax Digital but may chose to do so voluntarily.
If you are affected by this change, you will be required to keep digital records for VAT purposes and submit your VAT returns using compatible software. If you are still using spreadsheets and manual records, or know that your current accounting software is not MTD compliant you will need to act now.
The Making Tax Digital programme is part of a long term government plan to enable a more efficient and accurate system of keeping records for individuals and businesses. Making Tax Digital for Income Tax is in its pilot stages for certain individuals, and further updates will continue to be rolled out with a view to recording and submitting all tax information digitally by 2020.
With this in mind, it’s worth planning ahead and being prepared for these significant changes in good time.
We will be moving all of our eligible clients on to the cloud and can work with you to ensure you are compliant during each stage of the Marking Tax Digital initiative.
Bryden Johnson are experienced cloud accounting specialists – this means we can advise on the most appropriate accounting software suited to your business needs, help you make the smooth transition to digital accounting as straight forward as possible, and provide on-going support throughout.
Contact us : 020 8686 0255