Loading...

Making Tax Digital Timelines

What are the timelines for the MTD (Making Tax Digital) roll-out

April 2019- Who does this affect?

VAT registered businesses with turnover above the VAT threshold, currently £85,000 (net of VAT). MTD does not apply to voluntarily registered VAT businesses (below the threshold), however, you can apply to voluntarily join the scheme.

What will you need to do?

You will need MTD ready cloud bookkeeping software such as QuickBooks to keep digital records and submit your VAT returns. There is a spreadsheet fix which will use an API (Application Programming Interface) key to link the spreadsheet to HMRC systems. To be fair, I don’t know many accounting firms that are looking at this as a viable solution, instead, they are focusing on cloud products to complete the process because of its simplicity.

It’s worth pointing out that you will no longer be able to submit your VAT returns using HMRC’s own online services!

April 2020- Who does this affect?

This is when ALL vat registered business will need file VAT returns.

What will you need to do?

You will need to keep digital records and file your returns online using compatible MTD ready software.

April 2020 and onwards. Who does this affect?

To begin with, Sole Traders, Landlords, and Partnerships. Limited companies will be affected but at the time of writing this update, it’s unclear what the start date will be.

What will you need to do?

You will need to keep digital records and file your VAT returns and quarterly updates for income and expenses online using compatible MTD ready software for the purpose of income tax.

2018-08-14T14:00:53+00:00July 20th, 2018|Making Tax Digital|