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Seven days needed for Making Tax Digital VAT registration

HMRC has provided further details about its forthcoming Making Tax Digital changes, revealing that any contractor who pays VAT via direct debit and wants to sign up must do so seven working days before their VAT return is sent.

What this will mean for business owners is that there will be a period of seven working days before, and five days after, they send in their VAT return in which they are unable to sign up for this scheme. HMRC has also stated that those who do sign up will get an email confirming it within a maximum of 72 hours.

Starting from next month, most companies that are registered for VAT and that have taxable profits of more than £85,000 will be obligated to maintain digital copies of their VAT records. They will also be expected to use software that is compatible with HMRC’s Making Tax Digital site when they actually send in their returns.

Guidelines to help business owners and contractors cope with the change have been available since February and cover everything from the software needed to how to get the necessary user ID for the government gateway page.

A KPMG survey earlier this year of 1,000 companies around the country that are registered for VAT found that, despite the release of these guidelines, only 12 percent were prepared for the deadline on April 1st. Advice can always be sought from an accountant in Liverpool, London or wherever the business in question is located.

Posted by Louise
March 25, 2019

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