The UK tax authority (HMRC) recently released draft regulations and VAT notices that relate to the April 2019 launch of the “Making Tax Digital” legislation. A pilot of the programme for taxpayers, agents and software providers is also scheduled to begin from April 2018.
As stated in our previous article, when introduced businesses with a turnover greater than the VAT registration threshold of £85,000 will be required to use the system 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 implemented the new system will also synchronise VAT reporting requirements with income tax and corporation tax obligations.
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