The latest on making tax digital
All eligible businesses with a taxable turnover above the VAT threshold of £85,000 had to register to HMRC’s ‘making tax digital’ from 1st April 2019. This new system will ensure businesses maintain all of their records digitally on a quarterly basis. Some businesses were deferred until 1st October 2019 such as local authorities, charities, public organisations and traders based overseas.
The grace period for this new system was due to end on 31 March 2020, however due to the pressures of Coronavirus HMRC have extended the deadline. This means that all businesses now have until their VAT return period starting on, or after, 1st April 2021 to be ready.
As part of the new rules, HMRC require businesses to utilise HMRC-recognised software to maintain records and submit their returns. Xero provide a very easy to use software solution that we can integrate into your everyday accounting. As everything is saved in the cloud then you can work seamlessly with us to ensure all of your VAT returns are filed electronically.
The frequency and deadlines for submitting VAT returns is still the same as before. The majority of businesses file their returns quarterly, the main VAT periods are as follows:
- 1 January to 31 March – file by 7th May
- 1 April to 30 June – file by 7th August
- 1 July to 30 September – file by 7th November
- 1 October to 31 December – file by 7th February
Sean Daniel, Managing Director said “Despite HMRC delaying the deadline for ‘making tax digital’ it is still key to keep on top of the process.”
If you are not sure when your VAT return is due or how to register for ‘making tax digital’ then please get in touch with the Clear Vision Financial Management team, call us on 01794 330025 or email us
