30 July 2018
The UK tax authority (HMRC) recently provided an update on the progress made relating to the implementation of Making Tax Digital (MTD), due to begin on 1 April 2019.
This update stated that they are making good progress with 35 software suppliers having stated that they will have software ready for the first testing phase of the pilot. Which is when the new MTD system will be tested by a small number of businesses and VAT agents.
As stated in our previous article, MTD will require VAT registered businesses to use special software to provide summary tax data directly to the tax office electronically. This data will then be used to automatically generate tax records, instead of manually calculating and filing a VAT return.
Once fully implemented the new system will also synchronise VAT reporting requirements with income tax and corporation tax obligations for resident UK businesses.