Are you ready to file your first digital tax return?

HM Revenue & Customs (HMRC) has reminded business owners that their first digital quarterly return may be due by 07 August.
It comes after new research showing that there are still thousands of businesses yet to register for Making Tax Digital (MTD) for VAT, potentially risking hefty penalties.
While HMRC has previously confirmed that a light-touch approach to penalties will be in effect in the first 12 months of MTD, it will still penalise businesses who have not attempted to comply with the new legislation.
Under the new regime, almost all VAT-registered businesses earning above the VAT threshold (currently £85,000) will need to keep their records digitally and submit their VAT returns using MTD-compatible software.
For the majority of businesses, the first digital quarterly VAT return will be required by the 07 August 2019.
Don’t forget, if you are paying via direct debit, it will take up to seven days to register your payment. This means businesses should register for MTD no later than Friday 27 July.
According to the latest statistics, approximately 600,000 businesses have yet to register for MTD.
Commenting on the report, Theresa Middleton, Director of Making Tax Digital at HMRC, said: “Now is the time for businesses with an August quarterly filing deadline to sign up and join the hundreds of thousands already experiencing the benefits of MTD.
“During this first year, we won’t be issuing filing or record keeping penalties to businesses doing their best to comply.”
It is believed that MTD will be adapted to include more taxes, such as Corporation Tax and Income Tax, from as early as 2021.
For help and advice, please get in touch with our expert team.

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