New Forest

30/10/2019

VAT: Making Tax Digital

Over the last few months its been difficult to avoid the introduction of Making Tax Digital (‘MTD’), a new approach to VAT reporting that affects all VAT registered businesses from 1 April 2019 with taxable turnover over the VAT threshold, currently £85,000. There is no exemption from the MTD requirements for VAT registered charities, although many that are not limited companies will have had their start date deferred to their first VAT return period starting on or after 1 October 2019. For those making quarterly returns this means that the quarter ended 31 December 2019 will be the first that needs to be filed with HMRC in accordance with MTD principles.

To comply with MTD charities will need to keep digital records and submit their VAT returns using MTD compatible software. If you have not already done so, you should review your systems to determine whether you are ready for MTD or need to implement changes to be able to continue to meet your VAT reporting obligations.

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Many partners & the self-employed may have spent a few days a month working from home before the current crisis, but now almost everybody is working from home. There are a few small tax breaks for this, where you can claim tax relief on work related expenditure incurred.

SELF-EMPLOYED INCOME SUPPORT GRANTS
The amount of the grant is 80% of average profits for 3 years to 5 April 2019. The grant is capped at £2,500 a month for the initial 3 month period. This scheme has been extended for 3 months from 1 June but reduced to 70%, capped to £6750.

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