by Ruth Corkin
Making Tax Digital is on its way for all VAT registered businesses with a turnover in excess of the VAT registration threshold (currently £85,000). So what does this actually mean for taxpayers? 95% of VAT returns are currently filed online. However, this is electronic filing and most taxpayers take the figures calculated for the return and manually type them into a VAT return template on HMRC’s website.
Digital VAT return filing will mean that this facility is removed for all apart from the most technologically averse taxpayers. The return will need to be filed via accounting software or Application Program Interface (“API”) enabled technology (API is the method used to “talk” to HMRC’s computers and is currently used by banks etc. for app based banking).
Are you ready for this significant change? Do you have any manual processes when completing your VAT return? Do you know what HMRC will do with the data? Will it stop at the return or will more information be required over time? All these questions and more will be addressed at our workshops in April.
Get your business ready for Making Tax Digital: Essential update for VAT registered entities