This is another Making Tax Digital (“MTD”) update …..the taxman has FINALLY agreed what a good idea it would be to contact all VAT registered taxpayers, advisors and others to warn them about the upcoming start of MTD.
Only 6 months to go before kick off but, hey, better late than never I suppose. I know some will say “too little, too late”.
Their tweet said …”VAT registered businesses with a taxable turnover above the VAT threshold (£85,000) will need to keep digital VAT records and send returns using #MTD compatible software from April 2019.”
There are exceptions and workarounds to make this MTD journey simpler than it sounds but the main issue is that the necessary software to do the job is STILL not available. Many software companies say their products will be “ready” for launch day but who knows what will happen between now and then?
For example Jon Thompson (Chief Exec and Permanent Secretary of HMRC) says that HMRC will make a decision, at their October board meeting, as to whether or not MTD for VAT goes ahead as planned next April.
It might not even happen. (Gets my vote)