26 Mar 2019
With less than a week to go, HMRC is urging those firms which haven't signed up for the Making Tax Digital for VAT (MTD for VAT) scheme to do so 'as soon as possible'.
It is also advising businesses which have yet to prepare to 'get ready now' for MTD for VAT.
MTD for VAT will come into effect from 1 April 2019 for businesses which have a taxable turnover above the VAT registration threshold (currently £85,000). As part of the initiative, firms must keep some records digitally, using 'functional compatible software'. This means a 'software program or set of compatible software programs which can connect to HMRC systems via an Application Programming Interface (API)'.
Figures published by HMRC show that almost 1.2 million businesses will be affected by MTD for VAT. Additionally, each day more than 3,000 businesses are signing up to the scheme, according to the Revenue.
Commenting on the initiative, Mel Stride, Financial Secretary to the Treasury, said: 'In a world where businesses are already banking, paying bills and shopping online, it is important that the tax system moves into the 21st century.'
Meanwhile, Theresa Middleton, Director of the Making Tax Digital for Business programme, said: 'There are over 220 software products for businesses to choose from at a range of prices, including free ones, offering different levels of functionality.
'I'd urge any business affected by MTD to start preparing now, and to join the thousands of others who are already experiencing the benefits MTD has to offer.'