Small businesses ‘could pay heavy price’ for Making Tax Digital for VAT

The Economic Affairs Committee has warned Her Majesty’s Revenue and Customs (HMRC) that small businesses ‘could pay a heavy price’ for Making tax Digital for VAT (MTDfV). This ‘heavy price’ could drastically affect small businesses across the UK.

At Harvey Telford and Bates, we provide specialist support to all of our clients and their businesses, big or small, every step of the way. 

The Committee stated that HMRC has ‘failed to adequately support small businesses’ ahead of the introduction of MTDfV). 

MTDfV is set to come into effect from the 1st April 2019 and aims to provide support for businesses which have a taxable turnover above the current VAT registration threshold of £85,000. Under MTDfV, businesses must keep some records digitally and submit their VAT returns via an Application Programming Interface (API). 

The Committee has urged HMRC and the government to ‘start listening’ to small businesses where MTDfV is concerned.  

HMRC recently sent businesses within the scope of MTDfV so-called ‘encouragement letters’ which were sent to 200,000 businesses eligible to join the pilot scheme.  

Director at Harvey Telford and Bates, Amy Telford, commented on the Committees warning: “We are urging small businesses to come and speak to a qualified member of the team at Harvey Telford and Bates in relation to the Committees recent warning. We provide support and offer guidance to each of our clients and we stand by them every step of the way through difficult times such as this.” 

For more information on how we can help you handle ‘Making Tax Digital for VAT’ visit here.

Call a member of our team today on 01743 462604 or email us at hello@htbaccountants.co.uk 

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