HMRC are running a series of webinars around the changes affecting VAT-registered businesses with a taxable turnover above £85,000.
If you believe the adverts, accounting software is really easy to operate – but that depends on it being set-up correctly
All VAT registered businesses with annual taxable turnover exceeding £85,000 must comply with the making tax digital (MTD) rules for VAT
Most VAT registered traders will be required to file their VAT returns using MTD-compliant software for VAT periods beginning on and after 1 April 2019.
There were rumours before the Budget that the VAT registration threshold would be reduced, but the Chancellor has committed to hold it at £85,000 until April 2022.
If your business is VAT registered, and the turnover for the last year has exceeded £85,000, you should soon receive a letter from HMRC stating that you must comply with the making tax digital (MTD) rules from April 2019.
VAT will be first for the HMRC Making Tax Digital project
The Government would like all businesses to interact with it digitally, particularly where tax is concerned.