HMRC have issued a warning that those looking to register for Making Tax Digital for VAT will take seven days to complete, and is not a real time service.
Those that pay VAT by direct debit will need to do so at least seven working days before sending their VAT return to HMRC.
This has brought the urgent deadline of 1st April further forward for some businesses who are still looking to sign up in time and make their VAT payment.
What You’ll Need To Register For Making Tax Digital
Most VAT registered businesses with a taxable turnover above £85,000 must keep digital VAT records and use Making Tax Digital compatible software to submit their VAT returns.
They will need:
- Approved Making Tax Digital Software
- Government Gateway User ID.
- To Keep Digital VAT Records
Once you’ve signed up to Making Tax Digital HMRC will send a confirmation email within 72 hours of signing up.
What Happens If You Don’t Register For Making Tax Digital In Time?
Genuine errors in reporting won’t receive fines as HMRC have announced they are issuing a soft penalty regime for the first 12 months. However, actions like negligence, not signing up and not submitting won’t be taken lightly.
And with the deadline swiftly approaching reports are finding that just 12% are supportive and ready for the April 1st deadline.
Do you want to ensure that your business is ready for Making Tax Digital?
Perhaps you want to take up a bookkeeping or VAT filing service to help your business smoothly transition into this new legislation?
If so, we’d love for you to get in touch and for us to have a chat about you and your business’ needs.
Get More Business Blogs Like This
Want To Get Ready For Making Tax Digital?
Get In Touch Below