In a year’s time Making Tax Digital for VAT will be in full effect. But why should you care? Well, if your business is both:
- VAT registered, and
- has a taxable turnover that’s greater than the registration threshold (currently £85,000)
Then it will be mandatory for you (or your accountant on your behalf) to file quarterly online VAT returns with HMRC through its new submission portal. And mandatory does mean mandatory, as HMRC’s new submission process will completely replace the way VAT returns are currently submitted.
As with every instance in which the ‘old way of doing things’ is replaced with a new, shinier, more modern way, there may be some confusion about the finer details of MTD, and how exactly it’s going to work from April 2019. You’ve probably got some questions of your own that you’d like answers to.
Luckily for you we’ve put together a video all about MTD and the major things you need to know about the new government legislation, which you can watch below. In it, Clear Books’ CEO Phil Sayers discusses when MTD for VAT will be introduced, why it’s being introduced by HMRC, and how you can get ready for MTD thanks to our comprehensive range of online accounting solutions.
If you still have any questions about MTD after watching the video, then please do get in touch with us and we’ll be happy to answer them for you!
