HMRC is giving out mixed messages about compliance with Making Tax Digital for VAT, warns Yvette Nunn, director of Berkeley Associates, after spotting a mistake in guidance released by HMRC in July
Stop! Are you about to read fake news or real news? Surely it is real news if it’s about Making Tax Digital (MTD). Given that MTD for VAT has been in the pipeline for a very long time now, no-one in the business of advising self-employed or small business clients can have missed the requirements to keep digital records from 1 April 2019 - and that affected businesses need to submit VAT returns digitally from the first VAT periods beginning on or after 1 April 2019.
You may be thinking that the criteria is missing, so here is what you have all been reading for the past year or more. From 1 April 2019, businesses with taxable turnover over the VAT threshold (currently £85,000) will have to keep their VAT records digitally and submit VAT returns to HMRC online.
