More than one million businesses will be required by law to submit their first VAT return to HMRC using accountancy software in time for the August deadline.
Businesses with an annual turnover of £85,000 (with VAT periods starting on or after April 1) must sign up to Making Tax Digital (MTD) before August 7 VAT filing date, or by Monday, July 29 if paying by direct debit.
Originally announced in March 2015 Budget by George Osborne, Making Tax Digital (MTD) is HMRC’s plan to modernise the tax system that will mark a fundamental change in the way that businesses interact with HMRC.
Businesses must keep their VAT records digitally and submit their VAT return direct from their MTD-compatible software.
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.
- During this first year HMRC will not be issuing filing or record keeping penalties to businesses doing their best to comply.
Ellis & Co Accountants and Business Advisers are experts in this software, providing Sage, Xero, QuickBooks and FreeAgent accounting packages to our clients.
Our software specialist Anna Rowson-Smith reviews your needs and resources and offers an accountancy software package that is right for you and your business.
Anna also provides three hours of FREE set-up and training to all our clients.
For further information, or to sign up today, email email@example.com or call 01244 343504.
*Figures from HMRC