Should small businesses be worried about Making Tax Digital (MTD)?

22nd Jul 2018
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Monica Jervis

It is only VAT registered business that have to process their VAT Returns digitally by 2019.

Therefore the only change is in the way that this is done and the best advice is to make sure you are using software that will be MTD compliant by April 2019. The main software houses will be up to speed with this because they will have to be.

If you subscribe to QuickBooks for example you should get in touch with their support team and make sure they will be providing the software as part of your subscription.

If you are still using a past version of your provider’s software you may find that you will have to upgrade to their latest version in order to use the MTD compliance facility to submit your vat returns from April 2019.

If you use an accountant to submit your vat returns you shouldn’t have to worry at all as the accountant will look after the technical side.

I do however advise all businesses to register themselves for their Business Tax Account and add all the services they need ie VAT, PAYE, Self Assessment Tax just to give themselves some visibility over their own taxes even if they are using an agent/accountant.

So the answer to the question is no you don’t have to worry, but we are 8 months away from the first installment and you would be well advised to start making sure everything is in place for yourself.

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