The UK tax system is about to see the biggest change to the way taxable income is reported to HMRC in over 20 years.
The UK Government announced, shortly after the 2015 General Election, their commitment to a change in how tax is adminstered called 'Making Tax Digital'.
This was due to go live from April 2018, however, following feedback and concerns from parliamentary bodies, businesses, the acccounting profession and software companies the scope and timescales have now been pared back as follows.
Businesses will have to keep digital records should their turnover be above the VAT threshold and only for VAT purposes. This will only need to be done from 2019.
Instead of the originally proposed date of 2018, businesses will now not be required to keep digital records or update HMRC quarterly for other taxes until at least 2020.
Small businesses will be able to file digitally on a voluntary basis for other taxes.
It is important that businesses and the accounting profession are given adequate time to obtain the necessary skills and software required to adapt to the new methods of compliance record-keeping.
The packs that Company Policy Ltd have created will help all businesses stay complaint with all the changes to regulation that these new rules will bring therefore helping avoid the issue of non-compliance and penalties.
Company Policy packs already include accounts spreadsheets that take into account quarterly submission figures to HMRC.
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