As you may be aware, HRMC are moving towards all tax returns becoming digital. They are calling the scheme Making Tax Digital and the first step concerns VAT.
From 1st April 2019 all businesses with sales over the VAT threshold which are registered for VAT are required to file their VAT returns with HRMC using MTD compatible software.
So what software will you need?
There are essentially two different types:
- A compatible software package that allows you to keep digital records and submit VAT returns
- Bridging software that connects non-compatible software which you may already have, such as spreadsheets, to HRMC systems
HRMC have provided a search service to enable you to find the right compatible software or bridging software for you. You can access it here.
Once MTD for VAT has been finalised and is working HRMC intend rolling it out for Income Tax and Corporation Tax. There are no firm dates for implementation of these schemes yet, though they are likely to be brought in during 2020.
If you are experiencing any difficulty with MTD or just want to talk through your options, do feel free to give me a ring on 01594 842 188.