Committee warns small businesses ‘could pay heavy price’

Committee warns small businesses ‘could pay heavy price’ for MTD

The Economic Affairs Committee has warned HMRC that small businesses ‘could pay a heavy price’ for Making Tax Digital for VAT (MTDfV).

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

MTDfV is generally set to come into effect for the from 1 April 2019 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 MTDfV concerns.

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

Please contact us for help with MTDfV.

Internet links: Parliament.uk/news tax.org.uk/news

Media Contact

For further information please contact Natalia Pieterse

Natalia.Pieterse@beavismorgan.com

Direct Line: +44 (0)20 7549 2476

Reception: +44 (0)20 7417 0417

Follow us on Twitter

BM2020 on LinkedIn

beavismorgan.com/newsroom

Sign up to our newsletter

To stay up to date with the latest news and events