Are you a new business? Or an existing business interested in our services?Get a quote
HMRC has confirmed that Brexit will not affect the introduction of Making Tax Digital for VAT (MTD for VAT).
MTD for VAT is set to come into effect from 1 April 2019 for businesses which have a taxable turnover above the current VAT registration threshold of £85,000. As part of the initiative, firms must keep some records digitally, and must submit their VAT returns via an Application Programming Interface (API).
Experts previously suggested that HMRC would have to delay the introduction of MTD for VAT if the UK was to leave the EU without a Brexit deal. However, in a recent letter, Jim Harra, Deputy Chief Executive of HMRC, wrote: ‘Our system is already live and by the end of February we’ll have written to every affected business, encouraging them to join the thousands of others who have registered.’
In 2018, the British Chambers of Commerce (BCC) called for HMRC to postpone the introduction of MTD for VAT until April 2020, citing a ‘lack of awareness’ of the scheme and its requirements amongst UK firms.
The BCC stated that a delay of a year would ‘provide extra headroom’ to HMRC, allowing it to support businesses with MTD-related issues.
Brearley & Co Accountants are pleased to offer a free, no obligation, initial consultation with one of our experts who will be happy to discuss your business needs and how we can help you.Contact