‘start planning immediately?: HMRC begins Making Tax Digital pilot
With six months to go until the first stage of HMRC’s Making Tax Digital is introduced, the tax office has rolled out its first test pilot.
HMRC has invited more than half a million business owners with ‘straightforward? accounts to road-test the new model.
At the end of October, a further 100, 000 business owners will be able to apply for entry onto the pilot. Companies which trade with European Union State members, charities, and businesses which pay VAT on account are among those businesses who remain excluded from the pilot.
Watch: How to sign up for Making Tax DigitalRead more HMRC content:
From 1 April 2019, all VAT-registered businesses (taxable turnover above 85, 000) will need to keep their VAT records digitally and file their returns using Making Tax Digital-compatible software.
HMRC claims the initiative will make the UK’s tax administrative more effective, efficient and easier for taxpayers to submit correct returns.
Following the pilot’s introduction, Brian Palmer, tax policy expert at the Association of Accounting Technicians (AAT), urged small business owners to sign up as soon as possible.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
The financial secretary to the Treasury explains why Making Tax Digital is the right way to go for small companies, and offers tax compliance tips from both a political and a business perspective. more»