04 Mar 2019
With less than a month until the introduction of Making Tax Digital for VAT (MTD for VAT), HMRC is urging the 1.17 million UK businesses which have not yet signed up to the initiative to do so 'as soon as possible'.
MTD for VAT is set to come into effect from 1 April 2019 for businesses which have a taxable turnover above the VAT registration threshold (currently £85,000). Under the initiative, businesses must keep some records digitally, and must submit their VAT returns via an Application Programming Interface (API).
According to HMRC, almost 30,000 firms have already signed up to MTD for VAT, with 2,000 signing up each day.
Mel Stride, Financial Secretary to the Treasury, said: 'It has never been more important for businesses to be able to seize the opportunities that digital technology offers. MTD helps them to do just that – making it easier for businesses to get their tax right first time by transforming how they keep their records and send information to HMRC.
'It will give businesses more control over their finances, allowing them to spend time focusing on innovation, growth and the creation of jobs.'