From 1 April 2020 the next phase of HMRC’s Making Tax Digital (MTD) campaign is due to be rolled out. This latest implementation is aimed at VAT registered businesses whose turnover is under the VAT registration threshold.
For these businesses, for VAT periods beginning on or after 1 April 2020 they will need to sign up to MTD with HMRC and start submitting their periodic returns through relevant HMRC compatible accounts software, such as Xero.
However there are some exceptions to this deadline. Certain entities, including Charitable Organisations (providing they are not set up as a Limited Company), VAT groups, Trusts and Annual Accounting Scheme users, will be eligible to defer signing up for MTD for a further 6 months to periods beginning on or after 1 October 2020, if they chose to do so.
HMRC have made no secret of the fact that eventually they would like all taxes digitalising, including both Income Tax and Corporation Tax, these changes seem likely to be implemented over the next 5 years, so we would recommend that any self-employed individuals or businesses who are not currently using HMRC compatible accounts software start to look into the possibility of doing so sooner rather than later to help future proof their tax affairs.
As ever we will be here to support you through these challenging times so if you or your business are struggling to get to grips with these changes and would like to speak to one of our MTD experts then please get in touch by either telephone, e-mail, LiveChat or just pop in and see us at one of our offices in Hull or Withernsea.
No obligation, no jargon, just expert advice for you and your business from our team of highly skilled professionals.