Making Tax Digital (MTD) is part of the UK government’s plan to make the country’s tax system more efficient. It’s something that we’ve been keeping a close eye on for a while, and it will (probably) start to come into effect in 2019.
You only need to pay attention to MTD in 2019 if you are based in the UK, registered for VAT, and use Light Blue to produce the figures for your VAT return. The scope of MTD will be widened in the future, but it’s very limited at the moment.
HMRC’s current plan is that MTD will require businesses to start submitting their VAT returns via compatible software from April 2019. However, there’s some uncertainty as to whether this will actually happen: as recently as November the House of Lords seemed to be trying to tell HMRC that dealing with Brexit and MTD at the same time might not be good for either businesses or HMRC.
We’re always keen to find ways to help photographers in their day-to-day business, and meeting the needs of MTD is no exception. If this first stage of MTD does indeed go live in April 2019 then we will make sure that Light Blue is able to help you with it.
At a minimum, we’ll make sure that the VAT return figures from Light Blue can be exported in a way that will work with an easily available MTD tool. As the scope and requirements become more clear, we’ll be able to investigate ways that Light Blue can be even more beneficial to our customers.
Key points to take away are:
- In 2019, you’ll only need to be concerned with this if you’re VAT-registered.
- There’s a chance that MTD will be postponed to 2020.
- Helping you to meet the requirements of MTD is important to us.
- We’ll be making sure that we have tools and features in place to help you meet those requirements in time for MTD’s implementation.