It’s less than a year to go until Making Tax Digital comes into effect for millions of UK businesses and a number of selected companies have already begun submitting their tax returns as part of HMRC’s latest trial.
Ahead of the April 2019 roll out, a handful of businesses are helping to shape the new system, which took a team of 18 developers 12 months to build.
Making Tax Digital will transform the way businesses maintain and file accounting records and report their income to HMRC. Having delayed the roll out a number of times, businesses above the VAT threshold, which currently sits at £85,000, now only need to submit VAT records through the new system from April 2019. However, this information is already filed to HMRC four times a year, meaning that many won’t see a rise in admin during the initial stages.
Making Tax Digital will not yet be phased in for all other taxpayers until at least April 2020, but our continued message to VAT registered companies is to ensure that your business complies sooner rather than later to be fully compliant with the reforms ahead of the 2019 implementation.
Once fully rolled out, Making Tax Digital will require most organisations and self-employed workers to use relevant technology to maintain tax records, provide quarterly summaries of these tax records and submit a year-end declaration to HMRC.
Digitising our internal systems and implementing the latest financial reporting technology is just one of the steps that we have taken to supporting our clients with Making Tax Digital and ensure that we are fully compliant with the required changes.