Businesses with a turnover of over £85,000 have already joined the scheme for VAT but now VAT-registered businesses with a taxable turnover below that limit will be required to follow Making Tax Digital rules for their first VAT return starting on or after April 2022. This means having digital records to comply.
Our recommendation to all affected businesses is to join the scheme early from their year-end in 2021. This gives a good run into the new regime so that it is a smooth transition when it happens. For many businesses with March & April year ends that means getting organised in the next 2 months. Our clients affected the last time said this had been really helpful and reassuring to get used to the new system in advance.
We have started contacting our clients affected by this change to discuss your position, the best time to make this changed and how we are going to make this simple for you. If you are affected and have not heard from us yet, please get in touch to discuss your own situation.
Content kindly supplied by Maynard Johns Chartered Accountants