Making Tax Digital Update – November 2017

Making Tax Digital Update – November 2017

As I am sure most of you are aware there have now been delays announced to Making Tax Digital. The first wave will commence in April 2019 which will affect VAT registrated clients and clients filing VAT Returns.

All businesses with a turnover above the VAT threshold (£85,000) from April 2019 will have to:

Keep their records digitally for VAT purposes only and provide their nine box VAT Return via the Making Tax Digital portal with HM Revenue & Customs.

Other businesses who are VAT registered but below the threshold of £85,000 will not be required to file their Returns electronically this way but the perceived advice would be that they should move in this direction, as sooner or later I believe it becomes mandatory.

This will also affect Charities who may feel they are exempt but the advice coming from HM Revenue & Customs is that they would have to follow the same format as other registered businesses unless of course they are below the VAT threshold of £85K, which is unlikely.

The registration of other businesses to Making Tax Digital will obviously follow but not until 2020.