A pilot scheme has been launched by HMRC for a new online VAT service – Making Tax Digital (MTD) – with The Giftware Association involved in its initial phases.
“This is great for the productivity of many SME’s,” says Sarah Ward, ceo of The Giftware Association. “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.”
The MTD pilot will be made available to companies whose taxes are straightforward and their tax affairs up to date. It will have a phased roll out to more businesses throughout the year.
From April 1, 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.
