Leek accountancy practice LSGK Accountants Ltd is urging clients who submit VAT returns to register for Making Tax Digital ready for the April start date.
Businesses and individuals who are registered to pay VAT have a until the end of March to register for the government’s new digital payment system which goes live on 1 April 2019.
Making Tax Digital for VAT is the first enactment of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
It is estimated that filing mistakes cost the Exchequer around £9 billion a year. The improved accuracy that digital records provide, along with the help built into many software products and the fact that information is sent directly to HMRC from the digital records, avoiding transposition errors will considerably reduce the amount of tax loss. It is the government’s intention that submissions for all types of tax will be digital by April 2020.
VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns from 1 April.
The exception to this is a small minority of VAT-registered businesses with more complex requirements who will have until 1 October 2019 to submit their returns.
LSGK Accountants director Jed Eatough said: “To date businesses have been very slow to register. Although it’s not unusual when a new scheme is introduced, we are urging our clients to get ready for the changes which should save time, increase accuracy of VAT bills and free up more time to concentrate on running your business.
“We are urging businesses and individuals to speak to us for guidance on Making Tax Digital. In addition, there is comprehensive information available on the gov.uk website as well as the websites of financial software companies.”