We’re sure by now you’ve heard about Making Tax Digital (MTD). We wanted to give you a quick overview on what to expect and how we’ve been preparing for these changes.
As you may know HMRC are working on a number of initiatives to simplify the way businesses and individuals report their taxes. These updates, collectively referred to as “Making Tax Digital” (MTD), will be deployed in stages with the first due to be implemented in April 2019.
How will this affect me?
The April 2019 changes will focus primarily on how VAT information is filed with HMRC. If you’re VAT registered and currently using QuickFile to submit your quarterly returns, there’s little to do. You’ll just need to link your HMRC Tax Account to QuickFile before you can submit your next VAT return.
Under the new MTD system we’ll also give you a bunch of additional VAT reports to show your open and closed VAT periods, along with a real time view of your HMRC payments and liabilities. You can find out more about these reports on the link below.
From April 2019 VAT registered businesses with a turnover exceeding the current VAT Threshold (£85,000) will also need to keep their VAT records digitally and file their returns using MTD compatible software such as QuickFile. If you’re already doing this then there’s nothing to worry about.
The VAT Pilot Scheme
Yesterday HMRC announced that the VAT Pilot scheme is now open to the public. Over the last 6 months we have been working with HMRC and a number of QuickFile users to stress test our MTD VAT implementation. You can find out more about enrolling with HMRC on the VAT Pilot scheme here.
If you choose to voluntarily join the VAT Pilot Scheme with HMRC and you meet their eligibility criteria, just let us know and we’ll enable the MTD features on your QuickFile account.
We will keep you posted on all MTD developments as and when they happen. If you have any unanswered questions, we’d love to hear from you, just post your questions right here and we’ll get back to you ASAP.