The UK government says many of the 1.2 million businesses affected by the new Making Tax Digital (MTD) rules will be required to submit their first quarterly return to HMRC using software by 7 August. The deadline is earlier for those paying by direct debit, these businesses must register by 27 July.
Businesses with an annual turnover above £85,000 are being urged by HM Revenue and Customs (HMRC) to sign up to Making Tax Digital (MTD) before the 7 August VAT filing date. HMRC’s reminder comes as it also revealed:
- around 10,000 businesses are registering for MTD every day
- more than 600,000 businesses have signed up in total, with some 400,000 submissions already successfully made using software
- businesses in the agriculture sector (such as farmers) have been one of the fastest groups to sign up to MTD, with 50% already registered
- the financial sector has been one of the slowest to sign up, with nearly 75% yet to sign up
HMRC has also said there will be no filing or record keeping penalties issued to businesses that are actually doing their best to comply. HMRC expects MTD to reduce tax lost due to errors, thanks to the improved accuracy that digital records provide and the fact that information is sent directly from software to HMRC.