On April 6 2018 we fire the starting gun on the 12 month countdown to HMRCs Making Tax Digital live programme. This article is the first in a series aimed at keeping you informed of our developments as we make the necessary changes to facilitate this new initiative. Follow our progress as we bring you updates on a brand-new interface for Tax due for release in April 2019, better ways of working and new features to help ease the compliance burden.
Making Tax Digital – what is it and when?
It feels like a long time ago when then chancellor of the exchequer, George Osbourne, announced the ‘death of the tax return’. Three years later, we’ve had twists and turns followed by an announcement in July 2017 stating that businesses would not be mandated to use the new system until April 2019, and then only to meet their VAT obligations. Crucially, this applies to businesses with turnover above the VAT threshold. What this means in practice is that all VAT registered businesses will continue to file their VAT returns as they have been doing, but those above the VAT threshold will need to use commercial software to do so. Businesses with turnover below the threshold will not see any change; they can continue to file VAT returns in exactly the same way they do now, or they can choose to use the new service.
The Ministerial Statement goes on to say that businesses will be able to opt in for other taxes, but the initiative won’t be widened before April 2020. What this means is that a voluntary scheme will exist from April 2019, where clients can be enrolled for self-assessment; that will include the quarterly filing for self-employment and landlords.
Love it or loath it, Making Tax Digital is on its way and those agents who choose to adopt in plenty of time will be best placed to make a successful transition in 2020.
We’ll be bringing you further articles in our monthly newsletter, and you’ll be able to follow our progress and meet the team at various events we have planned this year. In the meantime, you can read more about Making Tax Digital here, if you would like to discuss any aspect of our plans you can contact us through the usual channels ………
Until next time….