icaew

Committee warns small businesses 'could pay heavy price' for MTD

The Economic Affairs Committee has warned HMRC that small businesses 'could pay a heavy price' for Making Tax Digital for VAT (MTDfV).

The Committee stated that HMRC has'failed to adequately support small businesses' ahead of the introduction of MTDfV.

MTDfV is generally 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. Under MTDfV, businesses must keep some records digitally and submit their VAT returns via an Application Programming Interface (API).

The Committee has urged HMRC and the government to 'start listening' to small businesses MTDfV concerns.

HMRC recently sent businesses within the scope of MTDfV so-called 'encouragement letters'. These letters were sent to 200,000 businesses which are eligible to join the pilot scheme. 

Please contact us for help with MTDfV.

Internet links: Parliament.uk/news tax.org.uk/news

04 Jul 2019

Tax gap remains low

HMRC has published a report showing that the UK tax gap in 2017/18.

04 Jul 2019

Preparing the workforce for EU Exit

Over two thirds of EU citizens that are currently in the UK are here for work.

04 Jul 2019

MTD for VAT latest

HMRC is phasing in its landmark Making Tax Digital (MTD) regime, which will ultimately require taxpayers to move to a fully digital tax system.