ACCOUNTANTS IN ST IVES
What is Making tax digital?
After Several years of debate, confusion and postponements the government have finally introduced legislation with regard to making tax digital. The principle behind this was to mandate quarterly reporting from approved software i.e. digital records.
From 1st April 2019 all VAT registered businesses with thurnover above the VAT threshold (currently £85,000) will be required to maintain digital records and will need to send this information to HMRC using third party commercial software. There is an automatic excemption for those business who are VAT registered but have turnover less than £85,000.
All businesses will be required to file quarterly reports from 1st April 2020 at the earliest. This has yet to be confirmed.
At this time there will be no free software for MTD for VAT. We are working with Quickbooks to ensure we get our clients the best rates for the software required. We have also completed the relevant training for other software providers such at Xero to ensure we can provide the best solution for the client.
Individuals and landlords with a turnover greater than £10,000 will fall into the governments MTD from 1st April 2020 at the earliest. Much like the non VAT registered businesses this has yet to be confirmed by HMRC.
As with businesses individual and landlords will be required to record their income and expensed digitally producing a MTD report quarterly.