|
answer text |
<p>Businesses who are registered for VAT and whose taxable turnover exceeds the VAT
registration threshold of £85,000 will be required to keep their records digitally
and file their VAT returns using Making Tax Digital (MTD) compatible software for
periods starting on or after 1 April. For the majority of businesses, who file quarterly,
their first MTD returns won’t be due until August or later. Small businesses with
turnover below the VAT threshold are not required to join, but can do so voluntarily.</p><p>
</p><p>HMRC are using a range of methods to communicate with businesses and agents,
both paid for and free, in order to ensure businesses are aware of the changes and
know what they need to do to prepare.</p><p> </p><p>Thousands of businesses have already
joined the MTD VAT pilot service. HMRC are on track to have written to every business
who is required to join MTD by the end of February, encouraging them to join the pilot
and pointing them to the range of help and support that is available.</p><p> </p><p>HMRC’s
Impact Assessment for MTD, published on 1 December 2017, was developed through a widespread
and comprehensive programme of work that considered the costs and requirements of
businesses across the VAT population. The methodology and modelling has been rigorously
reviewed, including by trusted external stakeholders such as the Administrative Burdens
Advisory Board (ABAB). The Impact Assessment considered the requirements for businesses
of different sizes and practices, including small businesses.</p><p> </p><p>Businesses
and accountants are making preparations for the introduction of MTD, and thousands
have already joined the pilot on a voluntary basis to test the service before they
are mandated to use it. Most businesses will not need to submit their first VAT return
through the new service until August at the earliest. For the first year, penalties
will not be issued for late filing, only for late payment.</p>
|
|