Making Tax Digital (MTD) for VAT is announced
On 13th July 2017 the Financial Secretary to the Treasury and Paymaster General announced that Making Tax Digital for VAT will come into effect from April 2019.
From that date all businesses with a turnover above the VAT threshold (currently £85,000) MUST:
•keep their VAT records digitally and
•provide their VAT return information to HMRC by using new MTD functional compatible software which will need to be bought externally as HMRC will not provide it (and it’s not available yet)
He also confirmed that MTD will be available on a voluntary basis to other businesses for both VAT and Income Tax (as if….).
So there you have it ….be ready for mandatory online filing using your new software from April 2019. Or else.