When it comes to the VAT returns London businesses need to fill out, there is a lot to consider. One example of this is upcoming changes in how certain companies do their filing. The new system will mean that they will no longer be able to enter their VAT returns using the HMRC portal. Rather, people will need to do it through new software.
Make Way For MTD
As a part of Making Tax Digital (MTD), 1.2 million businesses will need to use the new online filing system. However, according to figures, only 40% of them are aware of this. That is around 400,000 companies. They need to know about this and how to prepare for the new rules to come into place during April next year.
Those affected are businesses with a taxable turnover of more than £85,000. HMRC wants them to use a new digital system to file their information. But, there are an alarmingly high number of people who are not aware of this policy. As a result many aren’t beginning to prepare by adjusting their processes.
These figures are from a report by the House of Lords economic affairs committee. They used research compiled by the Institute of Chartered Accountants in England and Wales. The survey to provide the data was complete in July. There was also an additional survey in October. This one, by the Office of Tax Simplification, found that 30% were not aware of the MTD programme.
This shows how, despite HMRC believing businesses will be ready in time for the VAT of Making Tax Digital, it may not be the case. The timeline did not allow for planning and changes. In July though, it was announced that there would not be penalties for businesses without digital links for systems during the first year. However, people still need to provide digital record keeping and filing.
Looking For Help?
Brian G Lonis & Co is the experts you can trust for help with the VAT returns London companies need to complete. You don’t have to worry with our support, so rely on us and get in touch. We offer value for money in addition to making sure you get everything in order.