Making Tax Digital for VAT was due to come into force from 1 April 2019 for VAT registered businesses with a turnover in excess of the VAT registration threshold of £85,000. That continues to be the case for the vast majority of businesses.
HMRC have however announced a 6 month postponement to 1 October 2019 for more complex businesses falling into one of the following categories:
- ‘Not for profit’ organisations that are not set up as a company
- VAT divisions
- VAT groups
- Public sector entities that are required to provide additional information alongside their VAT return (eg Government departments, NHS Trusts)
- Local authorities
- Public corporations
- Overseas based traders
- Traders who are required to make payments on account
- Annual accounting scheme users
If your business does not fall into one of the above categories then you will be required to keep VAT records digitally and use MTD compatible software to submit VAT returns from 1 April 2019. Please get in touch with your usual contact at M+A Partners or a member of our Business Services team to discuss your software requirements and plans for Making Tax Digital.