Tax Agents blog – preparing for making tax digital (MTD)
10 May 2018
HMRC’s recent Tax Agent blog explains what the next steps are to make sure that your clients are prepared for making tax digital. From April 2019, businesses with taxable turnover above the VAT registration threshold must keep digital records and submit VAT returns using MTD compatible software. The pilot for MTD VAT has already commenced and the blog explains the importance of moving your clients to digital record keeping (if they are not doing so already) in preparation for April 2019.
Even though it will be mandatory for those above the VAT threshold from April 2019 to submit their VAT returns businesses below the VAT threshold can do this and can also join the pilot.
Details of the first MTD compatible software products for income tax are available on GOV.UK and information will be updated regularly as new products become available. Once the initial private testing phase of the VAT pilot is complete, details of MTD compatible software for VAT will also be published on GOV.UK.
HMRC encourage you to start your new clients on MTD straight away so they can benefit from a more straightforward and streamlined way of keeping records and providing tax information to HMRC from the start and they don’t need to make changes later.
Find out more by going to HMRC’s tax agent blog HMRC’s Tax Agent blog