Unincorporated Businesses (Sole traders/Partnerships/Property Landlords)
• For larger unincorporated businesses who are VAT registered (turnover above £85,000), Making Tax Digital will come into effect from April 2018.
• For smaller unincorporated businesses who have a turnover less than the VAT threshold, Making Tax Digital will come into effect from April 2019.
Once you’re on the new scheme, you’ll have to electronically submit your records and ensure they are updated each quarter. Paper documents will no longer meet the legal requirements outlined by HMRC.
Limited companies will gradually be introduced to the Making Tax Digital scheme over a period of time. Quarterly reporting for VAT will start from April 2019, with Corporation Tax the following year in April 2020.
Employees – How can I Prepare?
Businesses will need to keep their books and records digitally and submit information to HMRC every quarter electronically. This might mean changing the way you record transactions, editing your spreadsheets or looking into new software packages to help keep things simple. Herridge Accountants can help you with this.