Interestingly, HMRC also say that Making Tax Digital will generate around £1 billion per year in extra tax revenues. So, increased cost and more tax. Nice thought for anyone running a business.
There is a great lack of knowledge about MTD in the small business community, even though the deadline is rapidly looming. MTD will affect your business if you are VAT registered and have a turnover of £85,000 or more. It will apply from VAT quarters starting in April 2019.
If your business will be affected and you haven’t started thinking about and preparing for Making Tax Digital, you should put it on your agenda and get cracking. April 2019 will soon be here.
MTD rules will be made tougher shortly after launch and HMRC want to extend it to much smaller businesses too. This is not something to ignore because it could mean fundamental changes in how a business operates and it is better to plan ahead and not end up making hurried changes as a deadline looms.
For many businesses there is the double whammy of the (unknown) Brexit implications followed immediately by Making Tax Digital. These two events will only be a few days apart so it is even more important for any business involved in import or export to plan ahead.
There have been calls from various bodies to delay the introduction of Making Tax Digital, but HMRC has rejected these and is adamant that Making Tax Digital will be effective from April 2019.
This is not meant to scare you but to make you aware of the changing priorities at HMRC If you would like any advice on this then please do not hesitate to give our professional team a call on (01509) 816150 or by the contact form below, we will be happy to assist you.