We have been communicating the likely impact of Making Tax Digital (MTD) with our clients and contacts for some time now. We have hosted seminars about the subject and have highlighted the benefits of cloud and online accounting in order for businesses to make the most of the changes.
The pace and scale of change was amended dramatically. Digital tax was first mentioned in the 2015 Budget, only now are we seeing the first phase kicking in from April 2019. Following a period of radio silence from HMRC many were expecting them to delay the roll out once again.
Prior to Governments summer recess a brief announcement was made to clarify MTD was very much still on the cards and will be brought in as planned with no further delays.
The first phase will mean that VAT registered businesses with taxable turnover above £85,000 will have to keep digital records and submit their VAT return from compliant software effective with their first VAT return period starting on or after 1st April 2019.
Where is the HMRC letter?
Don’t worry you haven’t missed it. You may be one of many people we have spoken to who have said
“Thanks for making us aware – but why haven’t we seen anything from HMRC, when are they going to tell us?”
HMRC do not appear to have issued any letters to those who will be specifically affected, equally no general letters to VAT registered businesses have been issued either.
What we have seen in the past couple of weeks however is a ‘tweet’ from HMRC. They are perhaps under the impression all affected businesses are following their twitter account. Given that HMRC have 374,000 followers on Twitter and back in 2017 there were 2.67 million businesses registered for VAT/PAYE in the UK there is clearly a shortfall even if all followers take note!
You can follow their link here
We have been successfully implementing MTD-ready systems for our clients and have plans in place to move many more over in the lead up to April 2019. There are plenty of potential benefits to these systems to increase bookkeeping efficiency, improve cashflow and aid growth.
We are able to offer a full service to assist in converting/transitioning businesses to digital systems from current bookkeeping systems which may be manual or simply non-compliant.
If you don’t want to do the bookkeeping, why not consider outsourcing all, or part of it, to us? There are plenty of opportunities to have shared responsibility with live systems, and just think what you can do with the time you save!