The Government’s aspiration for the UK tax system is that all taxpayers should submit their accounts information to HMRC directly from accounting software. The first step towards this brave new digital world will be taken by VAT registered businesses.
From 1 April 2019, VAT registered businesses will have to submit their VAT returns via accounting software, not as now, by inputting figures on to a form on the HMRC webpage. There will be exceptions for business owners who can’t use computers due to age, disability or religious reasons. Businesses that are VAT registered on a voluntary basis will be able to choose whether to use accounting software to submit their returns or not.
The figures submitted by the software will be the same totals as are currently reported on quarterly VAT returns, but the business will have the option to submit more detailed supplementary information. We will be able to submit your VAT figures on your behalf as now, but the law will require you to keep your accounting information in a digital form.
The best way to prepare for this digital revolution is to get into the habit of recording your income and expenses using accounting software. We can help you choose and implement the right software for your business.
Action Point!
Are you geared up for the digital tax revolution?
