Making Tax Digital is being introduced by HMRC on 1st April 2019 and is designed to make sure our UK tax system is effective and easier for taxpayers.
As of 1st April 2019 VAT registered businesses above the VAT threshold of £ 85k will need to keep their records digitally and submit VAT returns using HMRC approved compatible software. This is the first part of Making Tax Digital with income tax and corporation tax due to follow in the future (This is currently on hold until April 2020 at the earliest).
What does this mean for you? It could be as simple as double checking with your bookkeeper/accountant that they are using Making Tax Digital compatible software, everyone in the industry is aware of Making Tax Digital so I would assume your professional, if you have one, has it in hand.
What if I do not currently use a professional? There is currently numerous Cloud based software available that is compliant but a qualified person such as a bookkeeper is there to help you have a smooth transition to digital and to make sure any relevant costs etc are transferred over when you move.
Whilst it may be an inconvenience for you to transfer to digital, it is a legal requirement and with the correct assistance from your bookkeeper you will soon be up and running and more importantly be compliant with HMRC!
Don’t panic about Making Tax Digital, both the software providers and most bookkeepers/accountants are prepared, many are Making Tax Digital certified (As we are) so get them onboard and it will be plain sailing!