Making Tax Digital (MTD)

HMRC is phasing in its Making Tax Digital regime, which will ultimately require taxpayers to move to a fully digital tax system. Under the new rules, businesses with a taxable turnover above the VAT threshold (currently £85,000) must keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software.

The new rules take effect from 1 April 2019 where a taxpayer has a 'prescribed accounting period' which begins on that date, or otherwise from the first day of a taxpayer's first prescribed accounting period beginning after 1 April 2019. For some VAT-registered businesses with more complex requirements, the rules will not take effect until 1 October 2019. Included in the deferred start date category are VAT divisions, VAT groups and businesses using the annual accounting scheme.

In the Spring Statement the Chancellor confirmed that the focus will be on supporting businesses to transition and the government will therefore not be mandating MTD for any new taxes or businesses in 2020.

Home | Contact us | Accessibility | Disclaimer | Help | Site map | accSEND

© 2019 Schiavi Pole Brett Ltd. All rights reserved. | Schiavi Pole Brett Ltd, 15A Walm Lane, Willesden Green, London NW2 5SJ

Registered in England Number 4300054. Registered Office Address : 15A Walm Lane, Willesden Green, London NW2 5SJ.

Registered to carry out audit work and regulated for a range of investment business activities by the Association of Chartered Certified Accountants

We use cookies on this website, you can find more information about cookies here.