Making tax digital
Making Tax Digital LITRG Press release: 100 days to digital tax deadline – but where’s the exemption guidance? With just over 100 days to go before it becomes compulsory for most VAT registered businesses to keep digital records and file their VAT returns via software, the Low Incomes Tax Reform Group (LITRG) is very concerned that HMRC are yet to publish detailed guidance to explain when someone might be able to claim exemption from the new rules and how they should do this. This will leave some worrying unnecessarily as to how they are going to cope with the new regime and others with very little time to prepare if their application for an exemption is turned down unexpectedly. Under Making Tax Digital for VAT, VAT-registered businesses with a taxable turnover above the VAT threshold (currently £85,000) will be required to keep records digitally and use software to submit their VAT returns from 1 April 2019. However, certain groups of people, for example those who are ‘digitally excluded’ due to disability, age, remoteness of location or any other reason - may be excused from Making Tax Digital for VAT altogether. The Government has said extending Making Tax Digital to other taxes will not happen before 2020 at the earliest. Head of Team at LITRG Victoria Todd said: “We are very concerned that HMRC have not yet published any detailed information as to how exemption from Making Tax Digital for VAT may be obtained, with the start date so close. HMRC have said that people should contact the VAT helpline to speak to an adviser if they think they should be exempt. We would like to see more specific guidance which explains what information and evidence [...]