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Making Tax Digital

With Making Tax Digital coming into force on the 1st April, 2019, it is now time for many of the 1.2 million businesses affected by the new law to submit their first quarterly VAT Return to HMRC using the software by the 7th August, 2019.

HMRC is still urging businesses with an annual turnover above the £85,000 threshold to sign up to MTD before the August filing date.

HMRC’s reminder comes as it reveals:

  • At the moment, around 10,000 businesses are registering for MTD every day
  • More than 600,000 businesses have signed up in total with some 400,000 submissions already successfully made using software
  • Businesses in the agriculture sector (such as farmers) have been one of the fastest groups to sign up to MTD with 50% already registered; and
  • The financial sector has been one of the slowest to register with nearly 75% yet to sign up.

After MTD, being first announced in 2015, with the intention being to simplify the tax for businesses and reduce the tax lost due to avoidable mistakes through the improved accuracy provided by digital records and the information being sent directly to HMRC from software.

Theresa Middleton, Director of Making Tax Digital, said:

“Now is the time for businesses with an August quarterly filing deadline to sign up and join the hundreds of thousands already experiencing the benefits of MTD.

During this first year we won’t be issuing filing or record keeping penalties to businesses doing their best to comply.”

Businesses can sign up for MTD on GOV.UK. If paying by Direct Debit, businesses should register at least 7 working days before a return is due. If not paying by Direct Debit, businesses can register at least 72 hours (three days) before their return is due. Make sure you have MTD-compatible software and that your last pre-MTD Direct Debit has come out of your bank account before signing up.

If you would like further advice on this or another accountancy topic then contact AJR & Co Ltd