The move to digital reporting with MGI Midgley Snelling LLP.
2019 will see a significant change to the way VAT returns are made to HM Revenue & Customs (HMRC) by businesses with annual revenues of £85,000 or more.
From 1 April 2019, businesses will need to make VAT returns on a quarterly basis using a ‘designated software package’. This is the first stage in the implantation of the Government’s Making Tax Digital programme, which is intended to take the filing of most taxes online in the coming years.
Many of our clients are already using cloud accounting packages such as Xero and QuickBooks online. These packages will not only future-proof your business in readiness for each new Making Tax Digital requirement in the coming years, they also enable you to share financial information in real time with our team and quickly produce bills and invoices.
Keeping digital records and making quarterly updates will not be made mandatory for taxes other than VAT before April 2020 at the earliest.
This timetable differs drastically from the original system proposed by the Government and restricts the number of businesses immediately affected by the MTD regime.
Nevertheless, companies do need to be prepared for the gradual implementation of the new digital tax regime.
The Government plans to make the necessary VAT regulations available imminently, allowing businesses and software developers time to develop the necessary software to meet the detailed requirements before they come into effect.
Contact us today to find out how we can save your business time and money, while making the transition to Making Tax Digital for VAT as stress-free as possible.