The government is phasing in its Making Tax Digital (MTD) initiative over the coming years, with the aim of creating a ‘transparent and accessible tax system fit for the digital age’.
The new system will see the introduction of a fully digital tax system, with businesses and individuals being required to register, file, pay and update their information via a secure online tax account.
VAT is the first tax to be reportable under MTD. From 1 April 2019 businesses with a turnover above the VAT threshold must keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software.
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.
Moving your processes over to a compatible digital system ahead of time will help to ensure that you are ready when the legislation takes full effect, and may also help to improve your business’s efficiency and productivity in the long-term.
Curnow & Co can help your business to implement a digital system to ensure that you meet the new digital reporting requirements. We will also be keeping up to date on the latest developments in relation to MTD.
Please contact us for more information.