Hundreds of Hampshire businesses could be at risk of various penalties if they don’t comply with new regulations as Making Tax Digital (MTD) comes into effect from April 2019. Romsey based Accountant, Clear Vision, highlights the key changes that MTD will bring and what to do next to make sure you’re ready and don’t face any unnecessary expenses.
Making Tax Digital: What’s changing?
Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
MTD begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns using compatible software.
Other components of MTD, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest.
What will HMRC need when MTD is in effect?
HMRC has announced the records that they require within the MTD quarterly submissions:
- Business name
- Address of principal place of business
- VAT registration number
- VAT accounting schemes (if applicable)
- Tax point of sales/purchases
- Net value of sales/purchases
- Rate of VAT charged on sales/purchases
How to make your tax return digital
Clear Vision, a financial management company in Romsey, can help by using MTD compatible software to file all your accounts. It is fast and easy to do, and we can take care of everything. We can ensure MTD is a smooth transition for you, without being a burden. Contact us at Clear Vision with any questions or to see how we can help you.