HMRC has recently released the latest Making Tax Digital exemptions guide for taxpayers, for the upcoming MTD commencing April 1 2019.
This MTD exemption guide provides a digital record, detailing record keeping and the necessary requirements for Making Tax Digital. This document is an addition to other VAT notices, helping you gain a solid understanding of the MTD changes.
Making Tax Digital requires VAT registered businesses with a taxable turnover above the VAT registration threshold to keep digital records and filing returns using software. If your digital data is up to date, software will be able to collect and develop your VAT return. It will show the return, followed by asking you to declare if the data is correct and confirm that you like to send to HMRC.
The Exemption Guide covers a range of topics including;
- Turnover test (exemption on the grounds of taxable turnover)
- Finding out when the Making Tax Digital rules start
- Your rights and obligations
- Examples of businesses who are exempt
- Third Party Support
- Religious Exemption
- API enabled digital software
- Requesting exemption from HMRC
To access the exemption guide, visit; GOV.UK
For accountants this represents a new way of doing things and a complete change from the usual way of dealing with clients and HMRC. This will have a BIG effect on UK accounting firms in the short and medium term.
For more information, contact us;
Tel: 0121 314 2020