1MRuKfED_400x4001.jpg

MAKING TAX DIGITAL

HMRC PILOT SCHEME

 

As you may be aware, Making Tax Digital (MTD) comes into effect on 1st April 2019 and will change the way you need to submit VAT and accounts information to HMRC. If you are a VAT registered business with a turnover over the VAT threshold (£85,000) then you must ensure you are compliant with the new legislation and this effects VAT returns which start on or after 1st April.

HMRC have issued notices regarding MTD which may be confusing and if you have already signed up for the MTD Pilot Scheme, please let us know as soon as possible so we can ensure your submissions will be accepted by HMRC.

If you are already using a cloud based software package and submit VAT returns via this (Xero, QuickBooks Online, Sage One etc) then this software will ensure you are able to make compliant submissions. If you are on the latest desktop versions of Sage, QuickBooks etc then you may also be compliant but older desktop software, spreadsheets or manual records are not compliant under the new rules. A full list of compliance software, which is being regularly updated, can be found here.

We will be contacting clients over the next few weeks where we have identified a possible compliance issue, but if you are in any doubt as to what action you need to take, or to discuss MTD further, please speak to your usual Baldwins contact who will be happy to help you.

We appreciate that at this stage, MTD for VAT may not be relevant to you. We want to make sure that our clients are fully informed and kept up to date with regulatory changes. It is expected that the government will mandate MTD for income tax in 2021, so there will be future compliance considerations for non-incorporated businesses that are within the scope of MTD. If you are unsure if MTD is relevant to you at this time, please contact your usual Baldwins contact and they will be able to advise you.