Making Tax Digital (MTD) will apply to your business if your annual turnover is £85,000 or over, from 1st April 2019. Yes, that really was the well-chosen date!
From then, you will have to submit your VAT and Tax Returns online to HMRC.
HMRC will have sent you a letter if your turnover is less than £85,000 per annum. This means you are in the deferral group. You will be required to keep digital records from 1st October 2019.
If your turn over is £85,000 or more per annum, you will need to keep digital records and use compatible software. You will need software which enables you to do this digitally. You will also need to file your Income Tax digitally.
In the past, there has been a huge amount of tax not paid on time which has cost the Exchequer almost £9 billion. As usual, HMRC will apply fines for late filing, but MTD has been set up to make the process more streamlined and to ensure the correct amount of tax is paid on time.
We can be your Appointed Agent and ensure this is done for you.
HMRC have a issued a VAT Notice 700/1 which outlines who should register for VAT.
By April 2022 all VAT registered businesses will be filing online under Making Tax Digital (MTD).
Legislation can be found under Making Tax Digital Finance Act No 2 2017