Businesses will be starting to think about what they need to do before the government’s Making Tax Digital initiative.
What is Making Tax Digital
Making Tax Digital (MTD) is a government initiative designed to transform the tax system and to end the use of the tax return for a great many taxpayers. It is intended to make it easier for businesses and individuals to maintain records and to get their tax correct. Under MTD, businesses will be required to keep records digitally and make a quarterly return of data to HMRC.
MTD is set to come into force in April 2019 and will apply for businesses with annual sales over the VAT threshold of £85,000. If MTD applies to you, you’ll have to use digital tools to keep records of your income and costs. Currently you may use the free Government Gateway for entering your quarterly tax return, but this is due to close and from April 2019 you’ll need to use software to submit your VAT returns electronically.
Pegasus have confirmed that Opera 3 will be fully compliant with the new MTD requirements. Opera II will not have the functionality to produce VAT Returns from April 2019, and therefore we recommend that Opera II customers move to Opera 3 before Making Tax Digital comes into effect.
If you’d like to know more about Making Tax Digital and implications this will have for your business, contact us on 01707 607100.
You can also watch this short informational video from Pegasus.
Useful links
Overview of Making Tax Digital (Source: gov.uk)
HMRC VAT Notice 700/22: Making Tax Digital for VAT (Source: gov.uk)
MTD: Consultations – A collection of consultations around MTD reform (Source: gov.uk)
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