New government legislation for businesses taking revenues above £85,000 launches today.
Making Tax Digital (MTD) means that you won’t be able to keep and submit manual records after April 2019. Instead, HMRC will only accept VAT returns using compatible software that supports Making Tax Digital for VAT such as Xero.
According to KPMG, 98% of VAT registered businesses already file VAT returns electronically; however, the new legislation involves significant changes to existing processes including implementing new accounting software.
Worryingly, two-thirds of businesses say they still need more support and advice about exactly what they need to do. For more information visit https://www.gov.uk/government/publications/making-tax-digital