A new compulsory way of filing VAT returns and digital record keeping is being introduced for VAT registered businesses with a vatable turnover of more than £85,000 with effect from VAT period starting on or after 1 April 2019.
Presently only circa 30,000 of 1.2m businesses have signed up for Making Tax Digital (MTD) which represents just 2.5% of those that are required to.
Therefore, time is of the essence to make sure you have a solution in place and whilst many clients are on compatible software, it is also necessary to complete an authentication process with HM Revenue & Customs before you can submit your VAT return over the new system.
The implication is that if you are not compliant you could potentially be exposed to a £400 penalty for non-compliance, thankfully there is a ‘soft landing’ on these penalties for the first 12 months, but only in certain circumstances and where you have made reasonable efforts to comply, accordingly we would encourage you to make the necessary changes as soon as practicable.
The conversion or authentication process can be relatively straight forward and we are here to help guide you through the process, please do get in touch to find out what you need to do.
Contact Rob Case or one of his team on 01242 776000 or email MTD@randall-payne.co.uk.