The new making tax digital (MTD) requirements, which take effect from 1st April 2019, apply to all VAT registered businesses trading taxable supplies above the VAT threshold of £85,000. (taxable supplies are goods sold zero rated, reduced rated and standard rated. Exempt and outside the scope supplies do not count towards the threshold). Any businesses which has voluntarily registered for VAT and does not currently trade taxable supplies over £85,000 in a rolling 12-month period does not have to currently comply with MTD.
Three key requirements of MTD:
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