A recent survey* of accountants shows that 90% of advisers do not have a solution in place to offer their clients ready for the looming Making Tax Digital deadline in April 2019. In brief, Making Tax Digital (MTD) requires businesses to submit their VAT return information directly from their book keeping software to HMRC, with effect from 1st April.
For businesses who maintain their financial records using a manual cashbook or spreadsheet you need to convert to a book keeping package which is MTD compliant, such as Xero, or adapt your existing system to an “API enabled spreadsheet cashbook”.
By 1 April 2019, all Holiday Parks with a turnover exceeding the current VAT registration threshold of £85,000 will have to submit their VAT returns digitally using an API interface like Xero.
Making Tax Digital (MTD) will, for many businesses, require the implementation of new software and systems. This can seem daunting and many such endeavours find themselves doomed to failure due to a number of common mistakes. Avoid these pitfalls though and changing systems can bring efficiencies and revolutionise your business.
Making Tax Digital for VAT means that every purchase invoice has to be recorded individually and the VAT Return will also need to be submitted via digital API enabled accounting software, find out how to streamline your bookingkeeping.
Making Tax Digital requires VAT registered businesses with a taxable turnover above the VAT registration threshold (currently £85,000) to keep their records in digital form and to file their VAT returns online using a API software but who are the exemptions to this rule?
Making Tax Digital (MTD) comes into effect on 1st April 2019 and will see an end to 'shoe box' accounting. A cloud accounting package can help ensure you are compliant.
HMRC is introducing a fundamental change to the way in which VAT returns are being submitted from April 2019. Are you ready for Making Tax Digital in April?
In the Budget in March 2015, the then Chancellor George Osborne announced that the annual Self Assessment Tax Return was going to be abolished, and individuals and businesses were being brought into the digital age with ’Making Tax Digital’. This has been described as the biggest change to business administration since the introduction of VAT in 1973. Instead of completing an annual Self Assessment Tax Return, information will be submitted to H M Revenue and Customs (HMRC) via a ‘Personal Tax Account’ throughout the year.