Making Tax Digital Pembrokeshire
Making Tax Digital Pembrokeshire
Latest News : for VAT and Income Tax
Making Tax Digital Pembrokeshire – currently voluntary for Sole traders and Landlords (compulsory for VAT registered companies in April 2019): As part of the Making Tax Digital pilot, self-employed businesses and landlords can voluntarily use software to keep their business records digitally and send Income Tax updates to HMRC, instead of filing a Self Assessment tax return. This means you’ll see an estimate of how much tax you might owe as you go, rather than waiting until the end of the tax year.
The companies deferred from Making Tax Digital for VAT are : trusts, ‘not for profit’ organisations that are not set up as a company, VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payments on account and annual accounting scheme users.
In April 2019 Making Tax Digital will become mandatory for nearly all VAT registered companies, there are a few exceptions, but H.M.R.C. should have already written to you if you are a deferred company. Even deferred VAT registered companies will be part of the Making Tax Digital for VAT by October 2019.
So what exactly is Making Tax Digital for VAT and how will it affect me? Making Tax Digital for VAT is the phrase HMRC use to describe how they would like your VAT records entered and stored digitally using suitable and approved software. You can either use a full VAT software package which complies to MTD, or so called “bridging software” to allow existing software (generally spreadsheets) to interface to the new HMRC VAT submission system.
