HM Revenue and Customs (HMRC) has warned that VAT-registered businesses have less than three weeks until the introduction of Making Tax Digital for VAT.
Making Tax Digital for VAT applies to VAT-registered businesses with taxable turnover in excess of £85,000. HMRC estimates that 1.2 million businesses will need to comply but only 30,000 businesses have signed up early to the Making Tax Digital pilot.
For businesses with VAT periods starting on or after 1st April, they will be required to use software that is compatible with the new Making Tax Digital (MTD) system.
HMRC has written directly to all VAT-registered businesses, explaining what they need to do and how.
More than 2,000 VAT-registered businesses a day are now signing up to MTD for VAT, with HMRC offering all eligible businesses a chance to pilot the system in the weeks leading up to 1st April.
Digitising the VAT return system will help to reduce the time businesses spend on their administration and bookkeeping in the long run, while making it easier for them to accurately calculate their VAT liability.
Theresa Middleton, Director of the Making Tax Digital for Business Programme, said: “There are over 160 software products for businesses to choose from with a range of prices offering different levels of functionality to suit every business.
“It’s time to get on board and join the thousands of businesses already experiencing the benefits of MTD.”
If you are unsure of the next steps to take for MTD for VAT, your local TaxAssist Accountant can offer step-by-step guidance to meet your new digital obligations.
Your local TaxAssist Accountant can advise you on MTD-compliant software such as Intuit QuickBooks, allowing you to manage your bookkeeping more easily, wherever you are.
Our network of highly-experienced accountants has spent a great deal of time developing the right support services to help the UK’s army of small businesses through this period of change.
Did you miss our Making Tax Digital for VAT webinar?
If you missed our very own MTD for VAT webinar this week, led by TaxAssist Accountants’ Senior Training and Communications Manager, Jo Nockels, don’t panic.
Click here to view a free recording of the session, allowing you to watch it back at your earliest convenience, keeping you firmly in the loop.