In April 2019 VAT rules changed, in that anyone business that exceeded the registration limit after that date would have to keep records digitally. All our relevant clients are now signed up to Making Tax Digital for VAT, as it is known.
There is a plan for all business taxes to be reported and collected through a system of MTD. This has been delayed, firstly by Brexit and more recently by the Covid-19 pandemic of 2020.
With Brexit out of the way, it is widely expected that the Government will announce a hard deadline for Making Tax Digital for Income Tax. We expect digital record keeping to be made mandatory for the self-employed starting from April 2023.
We are looking out for a commitment to begin consultation over MTD for Corporation Tax . Despite promising to consult on the shape of MTD for Corporation Tax some years ago the Government has yet to issue consultation document. Consultation could take a number of years, so implementation is even further out. The results are needed to clarify the form that MTD for Corporation Tax will take and enable software companies to start product development.
We are currently live on one Digital platform for VAT. We will have a secon platform availible for 1 July 2020. Both platforms are HMRC approved for VAT and are also used for record keeping and accounts preperation. Hoever both platfors are at a cost of between £18 and £24 per month by subscription.
We are looking into a few smaller, less expensive platforms for those below the VAT registration threshold. These range form Bank Accounts that track transactions and help with the bookkeeping to Digital cash book systems that work like other systems but with limited or no sales invoicing and limited connections to your bank. We will keep you informed.