It’s happening! Half a million UK businesses can now sign up to the HMRC’s making tax digital for VAT pilot.
Another 100,000 will be able to join by the end of the month.
That’s ahead of next April when about a million businesses registered for VAT with a taxable turnover above £85,000 will need to keep their VAT records digitally and file their returns using MTD-compatible software.
This significant step for the whole MTD programme was announced online yesterday.
Join the pilot as soon as you can
HMRC advises: “Eligible businesses and agents shouldn’t leave preparations to the last minute and are encouraged to join the pilot as soon as they can.”
More and more businesses use digital tools every day to help them operate – tax shouldn’t be different. This is a major step towards bringing VAT into the 21st century.
Theresa Middleton (pictured), director for Making Tax Digital for Business, adds: “Millions of people are already banking, paying bills and interacting with their suppliers and customers online. Using digital tools to help businesses manage their business income and expenses and get their tax right builds on this momentum and will also help them get more control over their finances.”
Background information
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world and Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
- more effective
- more efficient
- easier for taxpayers to get their tax right
HMRC has updated its guidance and produced a series of videos to help people make the leap into digital, including how to create an agent services account. Loads of info HERE.
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