The Independent Garage Association (IGA) hosted its latest members’ event recently and reminded garages and beyond about the forthcoming Making Tax Digital (MTD) rollout.
Notwithstanding garages, any business that has a taxable turnover above £85,000 and is VAT-registered will need to keep digital records of tax and VAT returns after 31 March 2019.
To do this, businesses will need to begin using MTD-compatible software, which supports their ability to exchange data records digitally between themselves and HMRC.
If more than one application is being used, data that flows between those applications must also be exchanged digitally, called ‘bridging software’.
Digital records can be kept in a range of compatible digital formats.
They do not all have to be held in the same place or on one piece of software.
For example, a spreadsheet can be a component of digital record keeping provided the product that consolidates records, or summary records from the spreadsheet, can exchange data digitally with HMRC.
Time to make changes
HMRC will give businesses until 31 March 2020 to make sure there are digital links between software products.
Before that date, cut and paste will be an acceptable way to transfer information.
A list of all software providers businesses and agents can use can be found here.
What do you think of MTD? Will it be a help or hinderance to your business? Let us know