One month to go until launch of Making Tax Digital for VAT
The government is encouraging businesses to sign up for Making Tax Digital (MTD) as today (March 13) marks less than one month until the new HMRC initiative is introduced.
From April 1, businesses above the VAT threshold (over £85,000) will need to keep digital records and submit tax returns using MTD-compatible software.
The new service is designed to reduce the time spent on administration and provide an integrated approach to business and tax, with over 160 types of software products available to suit different functions and budgets.
According to government figures, almost 1.2m businesses have yet to register for the service, with approximately 30,000 businesses already signed up ahead of the launch.
Despite some positive feedback there’s a concern that not enough business owners are signed up or prepared to sign up for doing their VAT data collection and filing digitally. Some steps to ensure they are compliant may help.