On 13 July 2017 the Government announced that Making Tax Digital for VAT will come into effect from April 2019.
From that date, businesses with a turnover above the VAT threshold (currently £85,000) will be required to keep their records digitally (for VAT purposes) and provide their VAT return information to HMRC Revenue and Customs (HMRC) through Making Tax Digital (MTD) compatible software.
VAT registered businesses with a turnover below the VAT registration threshold, and those that are not VAT registered for other reasons, will not be required to maintain digital records, but can do so on a voluntary basis.
The Government has made a commitment not to widen the scope of making Tax Digital any further before April 2020.
For more information about these new proposals on MTD, please contact us.
David Buck – Rugby 01788 539000/Luke Turner – Leicester 0116 261 0061