Committee warns small businesses 'could pay heavy price' for MTD

The Economic Affairs Committee has warned HMRC that small businesses 'could pay a heavy price' for Making Tax Digital for VAT.

The Economic Affairs Committee has warned HMRC that small businesses 'could pay a heavy price' for Making Tax Digital for VAT (MTDfV).

The Committee stated that HMRC has'failed to adequately support small businesses' ahead of the introduction of MTDfV.

MTDfV is generally set to come into effect from 1 April 2019 for businesses which have a taxable turnover above the current VAT registration threshold of £85,000. Under MTDfV, businesses must keep some records digitally and submit their VAT returns via an Application Programming Interface (API).

The Committee has urged HMRC and the government to 'start listening' to small businesses MTDfV concerns.

HMRC recently sent businesses within the scope of MTDfV so-called 'encouragement letters'. These letters were sent to 200,000 businesses which are eligible to join the pilot scheme. 

Please contact us for help with MTDfV.

Internet links: Parliament.uk/news tax.org.uk/news

COVID-19: measures for UK businesses

Measures for UK businesses and employers during the COVID-19 outbreak.

Spring Budget 2020

Details of the Spring Budget 2020. Our summary focuses on the key issues.

Factsheets

Factsheets covering a range of relevant accountancy and business topics.

Register

Signup for our FREE monthly newsletter and keep up to date with the latest news.

© 2020 Philip Atherton Limited. All rights reserved. | powered by totalSOLUTION

Philip Atherton Limited is registered in England and Wales. Registration number: 4544358.
Registered office address: The Old Electrical Workshop, Welby, Grantham, Lincolnshire NG32 3LT

We use cookies on this website, you can find more information about cookies here.