What is the timeline for Making Tax Digital?
Due to COVID-19 HMRC have announced a delay regarding the timescales for a business to have digital links in place for MTD purposes. This has been delayed until the first return on or after 1 April 2021.
From April 2019 most VAT registered businesses are now required to use MTD when completing VAT returns. Some VAT business have been deferred to October 2019.
Other areas of MTD, such as Income tax and Corporation tax, have been put on hold until 2020 at the earliest.
How do I sign up for Making Tax Digital?
Here is the link to sign up to MTD: https://www.gov.uk/guidance/sign-up-for-making-tax-digital-for-vat
Who is affected by Making Tax Digital?
Businesses that are registered for VAT in the UK and have a turnover above the VAT threshold of £85,000 are be required to keep digital records and submit VAT returns to HMRC using MTD-compatible software.
How does Making Tax Digital affect VAT returns?
If MTD affects you, you are required to keep digital records and submit VAT returns to HMRC using MTD-compatible software.
Is there software that can help me with Making Tax Digital?
Available software for Making Tax Digital; https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-vat