The first digital VAT returns will be due from VAT registered businesses with a turnover of £85,000 or more from 1 April 2019 using their own digital software. They will not be able to use HMRC software.
VAT registered businesses which have an annual turnover below £85,000, and who have never exceeded the £85,000 annual turnover limit, will not be affected and will be able to use HMRC software.
All other self-employed businesses, and taxpayers with income from property exceeding £10,000 per annum, will be required to submit quarterly income tax returns from 1 April 2020.
These returns will have to be filed via a personal tax account together with an annual summary.
Filing through a personal tax account will give you a direct link with government, so that in the future you will be able to renew passports, driving licences etc. through your online account. It will also provide an immediate online update for tax and National Insurance so you will know at any time where you stand in regard to income tax, VAT and NI.
And you will have access to a state pension forecast, showing you how many qualifying years you have towards your state pension. You normally need 35 qualifying years to obtain a full state pension.
If you’re not sure how your business is affected by these changes get in touch with us or call us on 01273 474885.