Making Tax Digital is a key part of the government’s plan to make it easier for individualsand businesses to get their tax right and keep on top of their affairs which will mean the end of the annual tax return for millions.
If you are a VAT registered business then you will need to move to digital record keeping from 6th April 2019 (i.e. use software to record all your VAT invoices and receipts).
Currently from April 2019 if you are not VAT registered then digital record keeping is optional.
If you are VAT registered and do not yet use software to record your VAT information (invoices to customers and from suppliers) you need to start planning for MTD. The new implementation date is April 2019.
Businesses that are affected:
- Only VAT registered businesses will need to keep digital records and only for VAT purposes.
- They will only need to do so from April 2019.
- Businesses will not be asked to keep digital records or update HMRC quarterly for OTHER taxes until at least April 2020 (the original dates had implementation from April 2019).