Making Tax Digital – From 2019 the way that you report your tax affairs to HMRC is changing.
HMRC’s “Making tax Digital” scheme will require compliance with a new, digitised scheme from 2019. Under this scheme, quarterly tax returns will be required to be submitted to allow for a more up-to-date and “streamlined” tax system. In HMRC’swords, Making Tax Digital will “bring the tax system into the 21st Century.”
What does this mean for you?
If your turnover is below the current VAT Registration threshold of £85,000 per year, you will have the choice of whether or not you want to move onto the new system.
If, however, your turnover exceeds the VAT threshold you will have to keep digital records and submit quarterly returns (similar to VAT Returns) from early in 2019.
How do you keep up to date with these changes?
Under their current timescale, HMRC will start running a small scale pilot scheme later this year, with a wider, live pilot scheme rolled out in 2018. This will give HMRC a year to refine the scheme before it is rolled out to everyone in 2019.
Whilst these changes may seem a long time away, it is paramount that any eligible tax payers and businesses prepare well in advance for the massive changes that Making Tax Digital will bring. For most businesses, this will entail moving all record keeping onto cloud based and online systems.
We can help you
We are certified advisers on numerous cloud based systems including:
- IRIS Accountancy Suite
- VT Transaction+
Whatever system you currently use (even if you’re still using spreadsheets or paper records), we can help you get ahead of HMRC’s changes. We tailor our approach to suit your needs and can assist with the set up of new online accounting and migration between software packages (with ongoing support and advice)
Keep up to date with the latest Making Tax Digital changes by Contacting Us and following our other Social Media outlets.