At the time of writing this blog there are 53 days to go until the start of Making Tax Digital, so here’s what you need to know.
1 Who does it affect – Most VAT registered businesses with very few exceptions
2 How will it affect me – For VAT periods starting after 1 April 2019 you won’t be able to submit your VAT return through the HMRC website or software that isn’t Making Tax Digital ready – You just won’t be able to do it
3 What do I need to do – You need to set up a digital tax account for your VAT registered business
4 Change your accounting software – If you don’t have accounting software that is Making Tax Digital ready then you will need to change or upgrade it. If you don’t use accounting software you will need to find a suitable accounting package. If you use spreadsheets you will need to find suitable software to submit your VAT return.
5 Accounting records – There are changes to what records you need to keep and you may also need to make changes to comply with the new rules.
6 There is help available – We can help you, we have experience in setting up and running Making Tax Digital accounting systems and participate in the HMRC Making Tax Digital pilot, having submitted VAT returns in the new way.
For help with Making Tax Digital please call me, Andrew Price on 01803 296678