At the moment (April 2019) this new legislation ONLY affects businesses registered for VAT *and also* earning over £85,000 per annum.
It’s intended to roll out MTD over the course of the next few years as mandatory (i) to VAT-registered businesses under £85,000 as well, and eventually (ii) to all registered businesses for Income Tax.
Please feel free to contact me if you want to talk through how this may affect your business.
On 13 July 2017, the Financial Secretary to the Treasury and Paymaster General announced that Making Tax Digital for VAT will come into effect from April 2019. From that date, businesses with a turnover above the VAT threshold (currently £85,000) will have to:
- keep their records digitally (for VAT purposes only), and
- provide their VAT return information to HM Revenue and Customs (HMRC) through Making Tax Digital (MTD) functional compatible software
He also confirmed that MTD will be available on a voluntary basis to other businesses, for both VAT and Income Tax.