From 1 April, all UK based businesses that have a taxable turnover above the VAT threshold of £85,000 are required to switch to the new digital tax service to report earnings and calculate VAT owed.
HM Revenue and Customs (HMRC) had previously claimed that 80 per cent of businesses required to join MTD were aware of the changes and had already started preparations for the Government’s new initiative to digitalise the tax returns process.
However, only four per cent (55,250) of UK businesses have registered for making tax digital (MTD), leaving more than one million to sign up.
Figures revealed that more than 3,000 businesses are registering to MTD every day; nevertheless this would mean that only 402,000 will have signed up by August 2019.
Even though MTD for VAT came into force this month, most businesses won’t need to file a quarterly return until 1 July 2019 at the earliest.
HMRC has stated that they are starting with a one-year soft landing and there will be some leniencies on how you file your first returns.
Initially, businesses won’t need to have a digital link between how transactions are recorded and how you submit your VAT return. But they will need to use bridge software to submit their figures while continuing with their usual VAT system.
For further advice on making tax digital, get in touch today, we can help.
Smailes Goldie Healthcare
With Nicki Shipley and Mark Sharpley at the helm of an experienced team of healthcare finance specialists, the Smailes Goldie Group is well positioned to offer tax and accounting advice to doctors, dentists, opticians and care homes.
Smailes Goldie keeps fully up-to-date with the wide ranging reforms to the NHS system and the ever-changing legislation affecting the healthcare sector. We can guide you through the intricacies and complexities so that you can concentrate on your patients.
If you feel that you need advice on any of the issues discussed in this e-bulletin, the Smailes Goldie Group are here to help.
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