The HMRC has today launched a pilot scheme for the new online VAT service. The Making Tax Digital scheme, which The Giftware Association has attended meetings in its initial phases, will bring all but the smallest businesses to self-manage their tax affairs in a real time online relationship with the HMRC. Today over half a million businesses are invited to try out the new system before its roll out in April 2019.
Making Tax Digital (MTD) for VAT will make it easier for businesses to manage their tax and will save them, and their agents, time which can instead be devoted to maximising business opportunities, encouraging growth and fostering good financial planning.
Sarah Ward, CEO of The Giftware Association said:
“This is great for the productivity of many SME’s, as an association we speak to so many of our members who are struggling to manage every aspect of their businesses. The MTD will help with basic tax processes and takes away human error and delay, giving more time to focus on other aspects of their businesses. As a trade association, it’s one of our jobs to educate our members and champion brilliant schemes like this and a move towards digital engagement”
From 1 April 2019, under MTD, around 1m businesses registered for VAT with a taxable turnover above £85,000 will need to keep their VAT records digitally and file their returns using MTD-compatible software.
The pilot will be made available to company whose taxes are straightforward and or tax affairs are up to date. It will have a phased roll our to more businesses throughout the year.
With many companies now using online portals for banking and stock-taking, the digital skills gap is closing and this new way of recording tax is set to narrow it further, especially amongst SME’s as it offers them the greatest opportunity to maximise the success of the MTD and the benefits it can present for UK productivity.
Theresa Middleton, Director for Making Tax Digital for Business, said:
“Millions of people are already banking, paying bills and interacting with their suppliers and customers online. Using digital tools to help businesses manage their business income and expenses and get their tax right builds on this momentum and will also help them get more control over their finances.”
Find out ore here at the HMRC website here GOV.UK. or get in touch with us at The Giftware Association.