What is Making Tax Digital?
Making Tax Digital for VAT is a policy being introduced by the UK Government via HMRC to get all businesses that are VAT registered and have a VAT taxable annual turnover that exceeds the VAT registration threshold (currently £85,000) to submit their VAT obligations with online accounting software (such as Xero, Sage or Quickbooks).
Download our free Making Tax Digital summary report which gives our recommendation about the upcoming introduction of Making Tax Digital and how to get your business ready. Download report
The Making Tax Digital summary report covers three key areas:
1. The upcoming Making Tax Digital for VAT policy being implemented by HMRC on behalf of the UK Government on 1st April 2019, and how we have the knowledge and experience to enable us to expertly provide support.
2. The difference between cloud-based accounting software and traditional desktop accounting systems, looking at the benefits of cloud-based software and disproving some of the common misconceptions surrounding it.
3. Finally, we give our recommended accounting software for Making Tax Digital for VAT compliance, together with our reasons for why this is our chosen accounting software.
This is the first policy of its nature, but in the long term, it is likely that the Government will work towards all reporting being undertaken directly from compliant accounting software e.g. personal tax returns.
VAT taxable turnover is the total value of everything you sell that is not exempt from VAT.
This policy will come into effect 1 April 2019, so businesses must be compliant by the first VAT period commencing on or after this date. For example, if your VAT period begins on 1 March 2019, you do not need to be using Making Tax Digital for VAT compliant software to submit for VAT return until the start of your next VAT period, if you were submitting quarterly, this would be 1 June 2019.
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