URGENT: HMRC Making Tax Digital In Just 4 Days!
Are you one of them?
You need to be ready if you answer YES to the following questions...
Are you VAT Registered?
Do you turn over more than £85k per annum?
Making Tax Digital – MTD – is not a choice. It is compulsory if you are a VAT registered business with an annual turnover of more than £85,000. Even if your turnover dips throughout the tax year you are still required to complete a MTD tax return each year.
You MUST be ready by 1st April.
There are a few concessions and exemptions to this – a few small business groups are either exempt, or will have a delayed start date of 1st October, but do be aware, these groups are very few and the overwhelming majority must be MTD ready by 1st April.
HMRC requires you to have online software compatible with MTD.
Many accounting packages are offering free MTD upgrades – check with your provider. Alternatively you can switch to a provider such as Sage, Quick Books, Clearbooks, Xero and FreeAgent who are all HMRC compatible.
MTD will require additional information from businesses from 1st April.
You will need to include: business trading name, registered address, VAT registration number, VAT schemes your business is part of, time/tax point of supply, value including net and rate of chargeable VAT and values of VAT reclaimed and non refundable amounts.
Additional information can be found by visiting HMRC’s website –
www.gov.uk. Go online and search ‘making tax digital’.