Small businesses with annual sales of over £85,000 will be required to file their VAT returns digitally for all VAT periods starting on or after 1 April 2019.
Businesses with sales of less than £85,000 who file VAT returns are exempt from this requirement until 2020.
This is potentially the biggest shake up to the tax system for a generation and it is vitally important that businesses are prepared for the changeover.
What are the implications for a small business?
Essentially you will have to start using compliant software to record your accounting data on from 1 April 2019 and this software will enable you to file your VAT returns with HMRC digitally.
We are happy to advise you which software systems we consider the most appropriate for your business and help you with the set up and training. Please call us on 03452 410 168 or email email@example.com for further details
Currently several software providers are running trials with HMRC to ensure that everything is up and running by 1 April 2019.
HMRC plan to roll out the digital filing of returns etc. to other taxes. The earliest date that this will be implemented is stated as 1 April 2020 but nothing as yet has been categorically confirmed.