MTD: Merging with VAT returns.
As part of Making Tax Digital for Business, those unincorporated businesses who are also VAT registered will have to submit their VAT data through a digital software package from April 2019, rather than by using HMRC’s online portal.
This will hit those businesses who do not currently use an accounting package the hardest as they will also need to keep electronic accounting records and start making quarterly income tax returns from April 2018.
Although initially it was suggested that the VAT data would form part of the quarterly income tax submission it has been decided that MTD for VAT will dealt with separately and will include the existing dataset from the current VAT return.
There will be flexibility for businesses to align the VAT and income tax periods so that simultaneous updates can be submitted if desired.
Don’t wait until the last minute – speak to your usual Whiting & Partners advisor so that they can speak to you about the best solution for your and your business.
Blog entry by: Catherine Hubbard.