20 days to go and 1.17m businesses still to sign up to Making Tax Digital

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With the deadline fast approaching there are still 1.17m businesses, out of a total of 1.2m, which are yet to sign up to Making Tax Digital for VAT.

 

For VAT periods from 1 April most businesses above the VAT threshold will need to keep their records digitally and submit their VAT return using Making Tax Digital compatible software. However, companies will not have to file their first digital VAT return under Making Tax Digital for VAT until 1 July at the earliest.

 

Those businesses already using software will need to ensure that the software they are already using is Making Tax Digital compatible, sign up to the new service and authorise their software for Making Tax Digital.

 

In the first year of mandatory reporting, HMRC has confirmed that it will take a soft penalty approach and companies will be able use a 'cut and paste' approach during the one-year soft landing before companies need to use digital links.

 

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 if exemption is granted by HMRC.

 

Lentells are able to work with you ensuring you are fully prepared for the introduction of Making Tax Digital. As QuickBooks Platinum ProAdvisors we can recommend the best package for your business and provide on-going support and training.  

 

To watch our video explaining Making Tax Digital, click here

 

For more information on Making Tax Digital, go to https://www.lentells.co.uk/services/business/making-tax-digital.