IS YOUR FIRM MTD COMPLIANT?
Businesses are being encouraged by HMRC to register for Making Tax Digital before the August deadline.
According to HMRC 1.2 million businesses with an annual turnover above £85,000 will be affected by new rules requiring them to submit online quarterly returns using compatible software by August 7th; meaning any business wishing to pay by direct debit must register by July 27th.
‘HMRC has revealed that 10,000 businesses are registering for MTD daily and submissions are already being successfully made’
A government press release stated that
‘The MTD rules became law for VAT periods starting on or after 1st April 2019 and require VAT registered businesses with a taxable turnover over £85,000 to keep their VAT records digitally and to submit their VAT return direct from their MTD compatible software’
Theresa Middleton of HMRC 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’
HMRC hopes MTD will ‘make it easier for individuals and businesses to get their tax right and keep on top of their affairs’