The government’s Making Tax Digital (MTD) programme means that from April 2019 businesses with annual taxable turnover of more than £85,000 will be required to maintain digital records for VAT and submit quarterly returns alongside the annual tax return.
Under the requirements of MTD, any transfer of data between software programs must be carried out using digital software.
Today HMRC have announced a six-month MTD deferral for a number of organisations with more complex requirements to give them “sufficient time for testing the service” before they are mandated to join.
Around 3.5% of VAT-registered entities will now be mandated into MTD from 1 October 2019 instead of for VAT periods beginning from 1 April 2019. These complex organisations include: trusts, not-for-profit organisations that are not companies (including some charities), VAT divisions, VAT groups, those public sector entities required to provide additional information alongside their VAT return (such as government departments and NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payments on account and annual accounting scheme users.
Contact us for more information and help with preparing MTD.