Making Tax Digital

Making Tax Digital for VAT (MTDfV)

If reports are to be believed 40% of business owners, having just read the title of this article, are now wondering ‘what is Making Tax Digital for VAT?’

With MTDfV estimated to impact 500,000 businesses, it is set to transform the tax system and given that it’s coming in as soon as 1 April 2019, it may have just caught your attention!

So what is it?

Making tax digital is a government initiative to ‘make it easier for individuals and businesses to get their tax right and keep on top of their affairs’. The way HMRC are aiming to achieve this is by making it mandatory for businesses and individuals to submit quarterly information to the tax office through directly linked software. This means that keeping paper records will no longer meet legal requirements.

The first phase of Making Tax Digital begins on 1 April 19 for VAT registered businesses with a turnover above £85,000. Other taxes will start to join from April 2020.

If you are not already prepared for MTDfV, contact us now to help you become compliant.