Making Tax DigitalThe purpose of HMRC’s Making Tax Digital scheme is to provide businesses with a “modern, streamlined system to keep their tax records and provide information to HMRC”. You will have a clearer picture of your tax liabilities on an ongoing basis and submit returns quarterly rather than annually.
Nevertheless, it will mean a lot of extra work for you, at least until you have adjusted and have suitable processes in place. The government is now allowing companies more time to prepare for the new system. Only those with a turnover above the VAT threshold will have to keep digital records (and that’s for VAT purposes only) from April 2019. They will not have to keep digital records or update HMRC quarterly for other taxes until April 2020 at the earliest. Smaller businesses will be able to opt in on a voluntary basis. The sooner you take steps to prepare for all this, the easier the process of adjustment will be. You will have to keep on top of things regularly in order to submit quarterly returns. Please contact me if you would like to know how I can help you with all this. |
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