For businesses over the VAT registration threshold, VAT is the first tax selected for digitalisation in the UK. This will take effect from 1 April 2019 for most businesses. For Income Tax and Corporate Tax, MTD will not be mandated until April 2020 at the earliest. Threshold
Businesses with turnover above the VAT threshold (£85,000 per year for the 2018/19 tax year), have until 1st April 2019 to comply with MTD. After this date, all VAT-registered businesses will need to store and submit their records electronically.
VAT returns must have digital links to digital records – spreadsheets (Excel) can remain, but they will need ‘digital links’ to source systems. HMRC has announced a soft landing period of 12 months, however digital links will be mandatory from April 2020.
VAT returns Currently most businesses submit their VAT returns through manually re-keying into HMRC’s online portal. This will no longer be allowed once Making Tax Digital comes into force and instead, VAT return submissions must be done digitally via HMRC’s Making Tax Digital through a software. Asmat & Co is ready to cater for all the NEW changes coming into effect from 01st April 2019
Deferral for certain businesses
The deferral applies to: not-for-profit organisations that are not set up as a company; trusts; VAT divisions; VAT groups; local authorities; public corporations; and traders based overseas. Public sector entities required to provide additional information on their VAT return, those who must make payments on account, and annual accounting scheme users are also covered by the deferral.
Knowhow and Assistance
At Asmat & Co. We shall be pleased to answer your queries and assist you in making your tax digital. Feel free to contact.
Email us on firstname.lastname@example.org
Or ring us on 0203 598 8621 / 01753 424 968