Making Tax Digital - What it Means?

From April 2019 HMRC is planning to implement its ambitious Making Tax Digital plans starting with businesses VAT registered and over the current threshold. It looks like the end for traditional bookkeeping that a lot of our clients have been doing for many years.

The newest information points to the use of software creating links between client bookeeping - now at the very least on spreadsheet software such as Excel - and the VAT portal. The way we used to log in and file will be done away with unless those clients qualify as an exception.

Initially HMRC have said that the exceptions will be generated on a case by case basis factoring in age, location and access to technology as the main contributing factors to non compliance.

Those already exempt from filing will automatically be exempt when the new MTD becomes live.

We will soon be writing to our clients who meet the criteria for MTD to ask if they've considered their options and help them move forward through this new transition of HMRC life.