The Making Tax Digital Timetable

Making Tax Digital for VAT is open now and businesses are being mandated to use the service this year. Income Tax is also available now on a voluntary basis for the smallest businesses and landlords. See below for the Making Tax Digital Timetable

Date	Note
April 2019	Firstly, from 1 April 2019 all VAT-registered businesses with a taxable turnover above the VAT threshold are required to keep digital records. Furthermore, those businesses will also need to send VAT returns digitally to HMRC. This must be done using MTD-compatible software (except those that have been deferred).
October 2019	From 1 October 2019, all VAT-registered businesses that have been deferred are required to keep digital records. They will also be required to send VAT returns digitally. This will have to be done using MTD-compatible software. The deferral applies to a minority of businesses. They fall into one of the following categories: 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 (such as government departments and NHS Trusts), local authorities public corporations traders based overseas those required to make payment on account, and; annual accounting scheme users.

Date

Note

April 2019

Firstly, from 1 April 2019 all VAT-registered businesses with a taxable turnover above the VAT threshold are required to keep digital records.

Furthermore, those businesses will also need to send VAT returns digitally to HMRC. This must be done using MTD-compatible software (except those that have been deferred).

October 2019

From 1 October 2019, all VAT-registered businesses that have been deferred are required to keep digital records.

They will also be required to send VAT returns digitally. This will have to be done using MTD-compatible software.

The deferral applies to a minority of businesses. They fall into one of the following categories:

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 (such as government departments and NHS Trusts),
local authorities
public corporations
traders based overseas
those required to make payment on account, and;
annual accounting scheme users.

Currently over half of businesses with turnover above the VAT threshold use software for tax purposes. If you don’t I can help you with this. Read this post for some Important facts about Making Tax Digital.