The government\u2019s major Making Tax Digital (MTD) programme has become law today for more than 1m VAT-registered businesses earning over \u00a385,000.<\/p>\n
The new rules, first announced in 2015, will mean most businesses above the VAT threshold will need to keep their records digitally and submit their VAT return using MTD-compatible software for VAT periods starting on or after 1 April.<\/p>\n
Mel Stride MP, Financial Secretary to the Treasury, said: \u201cDelivering Making Tax Digital for VAT is the first step toward our ambition to create one of the most digitally advanced tax authorities in the world.<\/p>\n
\u201cThe rules that come in from today will give businesses more control over their finances, allowing them to spend their time focusing on innovation, growth and the creation of jobs.\u201d<\/p>\n
HM Revenue and Customs (HMRC) said nearly 100,000 businesses have already signed up to the new service with 4,000 businesses a day now signing up.<\/p>\n
During the first year of VAT mandation, HMRC has said it “will take a light touch approach to penalties by not issuing filing or record keeping penalties where businesses are doing their best to comply with MTD”.<\/p>\n
Theresa Middleton, director of the Making Tax Digital for Business programme, said: “Tens of thousands of businesses joined our pilot over the last six months and have helped us to test and improve the live service ensuring we have the right support in place to help people transition.<\/p>\n
“You don\u2019t necessarily need to sign-up from day one, but you do need to make sure you\u2019re keeping your records digitally for your next VAT period which starts on or after April 1.”<\/p>\n
HMRC emphasised that April 1 is not a cliff edge for sign-ups \u2013 the first returns under the new system for the majority of businesses, who file VAT quarterly, won\u2019t be due until August at the earliest.<\/p>\n","protected":false},"excerpt":{"rendered":"
More than 1m businesses affected by the change<\/p>\n","protected":false},"author":18,"featured_media":2003137,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"coauthors":[81],"class_list":["post-2028014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-featured-story"],"yoast_head":"\n