Many VAT-registered businesses with a taxable turnover above the VAT threshold will be aware that they are now required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT Returns.
If you are not aware, with effect from 1 April 2019, if your taxable turnover is above the VAT registration threshold (currently £85,000) you are required to keep digital records and send HMRC your VAT Returns using compatible software.
HMRC states that avoidable mistakes cost the Exchequer over £9 billion a year. VAT is the first tax to be addressed but others will start from April 2020.
Whist HMRC have said it will take a “light touch” approach to penalties in the first year of implementation, they will only apply this approach where they believe businesses are doing their best to comply.
The rules came into place for businesses on 1 April and, from October, various other groups including trusts, local authorities, not-for-profit organisations and public corporations will also be required to submit their tax figures digitally.
At Altion Law we are specialists at advising and representing parties who have received HMRC assessments and wrongdoing penalties from HMRC. A lot of the issues we deal with are complex and our team are used to dealing with these types of enquiries. If you would like to have a confidential discussion with a member of our team, if you complete our contact us form, we will call you back at a time that is suitable for you or you can contact us directly on 01908 414990.