Making Tax Digital
Is your business ready for the April 2019 deadline?
How will Making Tax Digital affect your Vat registered business
Making Tax Digital is a mandatory new law, set by HMRC. It will come into effect in April 2019. More importantly, it is a big change in the UK tax system. The aim of the scheme is to make tax administration tasks easier and more effective. As well as to reduce overhead costs for tax affairs. HMRC are going digital. It will be compulsory for all VAT registered businesses in the UK (including sole traders, limited companies, partnerships, charities).The new law stipulates that businesses will have to:
- Keep digital bookkeeping records – spreadsheets and paper will no longer be accepted
- Submit returns via HMRC compatible cloud-accounting software – such as Xero and QuickBooks
Business owners who are below the tax threshold of £85 000 can also volunteer to be part of the Making Tax Digital regulations. It is expected that Making Tax Digital for income tax and corporation tax are expected to follow in April 2020.
Solutions to Making Tax Digital
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