Making tax digital successfully started from April 2019.HMRC have launched their online marketing campaign to raise awareness of the new system to small and medium business owners.

There are some criticism from professionals including accountants of the lack of preparation, support and advice from HMRC ahead of the changes. Lack of Knowledge has been felt despite HMRC working closely with software providers to help them to bring a wide range of MTD products to the market.

The recent update includes a webpage with information including the new HMRC VAT notice, details on the MTD VAT pilot, as well as an outline of the measures for their new scheme . It also contains a communications pack designed to support businesses and agents preparing for MTD with source material and information which can be used to support any letters, articles, presentations, social media activity, or web content planned by stakeholders.

The guidance follows on from recent ICAEW research that found that nearly 40% of businesses who will be impacted by the April 2019 legislation are still unaware of exactly what MTD is! So does this new documentation provide additional clarity that businesses and representatives have been asking for?

HMRC have begun to push on their social media stages including twitter where they link to their guidance pages for small business owners.

One of the aspects outlined within this new regulation is the VAT Notice 700/22: Making Tax Digital for VAT. This notice includes–

https://www.gov.uk/government/publications/software-suppliers-supporting-making-tax-digital-for-vat/software-suppliers-supporting-making-tax-digital-for-vat

 

• Who needs to follow the MTD rules and from when.
• The digital records businesses must keep
• How businesses must use software to keep digital records and file their returns from those digital records

Guidance on software still is still somewhat patchy. HMRC will not indorse until later in the year those software providers that will be accepted under the new scheme when the private pilot becomes public.

If you’re looking to know more information about MTD, then please speak to our office contact for more information.

 

Payslip Accountants are reliable local accountants and Tax advisors based in Swindon, we will try to assist with your any queries.

There are two new directives, first for the fast reaction mechanism aimed towards preventing VAT fraud. Second one is for the optional and temporary application of the reverse charge mechanism in relation to supplies of certain goods and services. Quick Reaction mechanism provides the legal basis to the countries that are members of the EU to integrate an emergency measure in they are in position to serious case of sudden and massive VAT fraud.

Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that

Value Added Tax (VAT) is a tax on consumption levied in the United Kingdom by the National Government. It was introduced in 1973 and is the third largest source of government revenue after Income Tax and National Insurance. It is administered and collected by HM revenue and customs, primarily through the Value Added Tax Act 1994. VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from outside the European Union.

Financial statements are prepared according to agreed upon guidelines. In order to understand these guidelines, it helps to understand the objectives of financial reporting. The objectives of financial reporting, as discussed in the Financial Accounting standards Board (FASB) Statement of Financial Accounting Concepts No. 1, are to provide information that