A pilot for a new online VAT service was launched today, with HMRC inviting more than half a million businesses to try it ahead of new rules coming into force in April 2019.
Making Tax Digital for VAT will make it easier for businesses to manage their tax and will save them, and their agents, time which can instead be devoted to maximising business opportunities, encouraging growth and fostering good financial planning.
From 1 April 2019, under Making Tax Digital, around 1 million businesses registered for VAT with a taxable turnover above £85,000 will need to keep their VAT records digitally and file their returns using Making Tax Digital-compatible software.
The pilot opens today for around half a million businesses whose affairs are up to date and straightforward, and will extend to most other business types over the coming months. HMRC has also listened to concerns and will give a small group of customers with more complex requirements a further 6 months to prepare. This will ensure there is sufficient time for testing the service with them in the pilot before they are required to join.
Eligible businesses and agents shouldn’t leave preparations to the last minute and are encouraged to join the pilot as soon as they can.