Making tax digital
Tax collection is going digital in the UK, starting with VAT but the rest of the system will follow soon after. Time to make sure your accounting system adds up!
You might not know it yet, but the British government wants to create ‘one of the most digitally advanced tax administrations in the world’. If you are in business be it large or small, it is time to fasten your seatbelt and strap on your protective headgear and get in there. The first step is making tax digital for VAT payers and the pilot service is now under way involving business whose affairs are straightforward and up to date. Most other businesses will be offered this service in the coming months. HMRC says that VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns from April 1 next year. However, some VAT-registered businesses with what are being classed as ‘more complex requirements’ can be the exception and they have until October 1 next year until they join.