Changes to Making Tax Digital for VAT coming soon!

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Changes to Making Tax Digital for VAT coming soon!

Nov 23, 2021

Does the extension of MTDfV affect you?

Making Tax Digital is no longer a new topic of discussion, back in 2019 HMRC introduced its MTD policy for all VAT registered businesses with a taxable turnover of over £85,000. In order to be compliant those businesses have to keep digital records and use third-party MTD compliant software to submit their tax returns to HMRC. Although not necessary, many businesses under the £85,000 threshold still registered voluntarily to join the MTD scheme.

However, from April 2022 HMRC have confirmed the extension of Making Tax Digital for VAT (MTDfV) to smaller VAT businesses which fall under the £85,000 threshold, this will include those who voluntarily registered as well as the self-employed and landlords.

The new extension will mean those that come under the VAT threshold will need to keep their records digitally and submit their tax return to HMRC through a third-party MTD software programme from their first VAT period starting on or after 1^st April 2022.

Further details can be found in HMRC’s ‘Extension of Making Tax Digital for VAT’ Policy Paper.

At Books and Business we can assist you in getting set up ready to go for the MTD April 2022 deadline. Quickbooks is our preferred partner as we feel it offers the best compatibility with MTD. We are Quickbooks Pro Advisors, therefore not only can we set you up we can also train you on the software.

If you want even more time to focus on your business, why not let us do all your bookkeeping for you? We take the stress out of everything MTD so you can focus on your business.

Lastly, we can also simply help you to register for MTD. So why not get in touch to see how much or little we can help you to get started and be MTD compliant by April 2022.

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Plans for ID verification from Companies House

by PH186232 • 22 Oct, 2024

Starting in early 2025, Companies House will begin rolling out new identity verification requirements for company directors and persons with significant control (PSCs). This means that, in the future, before filing information on the Companies House register, directors will need to prove their identity. This change is designed to reduce fraud and improve transparency. The reforms are part of the Economic Crime and Corporate Transparency Act 2023, which aims to combat fraudulent activity. As part of these reforms, accountancy firms and solicitors registered for anti-money laundering (AML) supervision will be among the first required to comply, starting in early 2025. By spring 2025, accountants and other professional service providers, who are registered for AML supervision, will be able to become authorised corporate service providers (ACSPs). This means they’ll be able to help clients verify their identities and pass that information on to Companies House. By autumn 2025, these new ID verification requirements will be mandatory for new directors and PSCs when setting up a company or making new appointments. If your business already exists, you will have a 12-month transition period until autumn 2026 to ensure your directors and PSCs comply with these requirements when your next confirmation statement is due. This is a significant change, therefore it’s important to stay ahead of these requirements to avoid any disruptions to your business.