Making Tax Digital
MAKING TAX DIGITAL
Making Tax Digital
Making Tax Digital started from 1 April 2019 for businesses that are VAT registered with a turnover of more than £85,000. From this date, businesses must use commercial software to keep a digital link between their transactions and to submit their VAT returns. Once a business is in the Making Tax Digital regime, if the business’s turnover falls below the VAT threshold it would still need to file their tax return using Making Tax Digital compatible software. Businesses below the VAT threshold can opt into Making Tax Digital.
HMRC has stated a taxpayer can apply for an exemption…
HMRC has stated a taxpayer can apply for an exemption for Making Tax Digital. The exemptions have to be applied for and are assessed on a case by case basis. The exemptions are:
- cannot use computers, software or the internet because of a disability or where you live
- object to using computers on religious grounds
You’re automatically exempt and do not need to apply if:
- you’re already exempt from filing VAT Returns online
- your taxable turnover is below £85,000
- you or your business are subject to an insolvency procedure
The software for Making Tax Digital must be functional compatible software’. More than one piece of software can be used to keep digital records but the software must be digitally linked.
Making Tax Digital is one of the biggest changes to the UK tax system. HMRC have already extended a version of Making Tax Digital to individuals though their Personal Tax Accounts. These accounts are pre populated with information HMRC already has for a taxpayer, such as interest, PAYE details, state pension. HMRC is keen to further expand these accounts so that tax payers can file tax returns through these accounts, without completing a tax return.
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I moved over to Avery Clifton Accountants in Reading after being with my previous accountant for a long time. I then found out what I had been missing in an accountant all these years - good customer service and being prompt with communication.
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I have been using Avery Clifton Accountants in Reading and their legal associates for a number of years for my company and feel confident that my accounts are in capable hands. They explain things in an easy to understand manner.
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"They've been marvelous with my business and also my other non-business issues"
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77 Albert Road, Caversham, Reading Berkshire RG4 7AW
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