Ideally, you’d have started on the 1st April 2019. But, it’s better late than never. If you haven’t already – start keeping digital VAT records (you can use bridging software to help you with any old spreadsheet data).
Around 1.2 million businesses impacted by Making Tax Digital are soon due to file their first quarterly VAT return. According to HMRC, businesses who plan to pay by direct debit have to register by the 27th July – despite many still feeling unprepared for the transition to MTD.
If your business has a taxable turnover above the VAT threshold (which is currently £85,000) then it must be registered for Making Tax Digital. Ahead of the first return, tax expert Mike Parkes of GoSimpleTax, is providing advice on how to prepare for Making Tax Digital, and how to iron out any issues that have been identified early on.
“Making Tax Digital has been a long time coming” Mike explains. “But since it has arrived, it has been posing issues. And one of the biggest problems is that people don’t feel prepared or know exactly what to do step-by-step. With the first VAT return deadline looming, I have put together my ‘top MTD tips’ to share, to help those who’ll be affected by Making Tax Digital: