As you may be aware Making Tax Digital for Business (or MTDfB for short) is part of the government’s plan to make it easier for businesses to stay on top of their day-to-day accounts. In the summer, the government announced a revised timetable for the introduction of MTDfB, but what impact does this have on you?
Previously under the original proposals, unincorporated businesses with a turnover above £85,000 were expected to be the first to see significant changes in the recording and submission of business transactions from April 2018. The government’s latest timetable now means that plans have been delayed by one year and will commence from April 2019. The legislation will now require all incorporated and unincorporated businesses above the VAT threshold (currently £85,000) to set up a digital tax account and file quarterly returns online. It should be noted that compliance at this stage is only for VAT purposes.
Even with these changes, it is still unclear whether HMRC acknowledges the challenges which businesses face in implementing MTDfB. Businesses with more complex VAT affairs (partial exemption, flat rate scheme, auctioneers’ scheme) that may use spreadsheets to aid the main part of the calculations will be affected by this level of digitalisation. At this stage, businesses in this situation are advised to speak to their software supplier to get an understanding of whether they are fully aware of the challenges presented in having to process all VAT reporting through the software.
With the first implementation date now less than 18 months away, procedures should be put in place to ensure you can comply with this new timetable. MHA MacIntyre Hudson offers a wide range of services and support to assist you with meeting your obligations under MTDfB. Whether you simply need advice on software or you are looking for us to take the burden of quarterly reporting off your hands entirely, MHA have the right package to cater for your needs.
For any advice on implementing digital systems or for further information on what MTDfB means for you, please contact
Donna Dallas, Business Services & Accounts Manager
MHA MacIntyre Hudson
T; 03330 100221
or your local MHA MacIntyre Hudson office, details of which can be found on our website – www.macintyrehudson.co.uk