ACS (the Association of Convenience Stores) has produced a guide to help retailers prepare for submitting quarterly tax updates digitally under HMRC’s Making Tax Digital (MTD) reforms.
From 1st April 2019, businesses with a taxable turnover above the VAT threshold (currently £85,000) must:
- keep VAT records digitally; and
- use MTD-compatible software to submit their VAT returns
The purpose of MTD is to digitise the VAT return process to reduce the tax gap and help businesses keep on top of their tax affairs. The reforms will not require retailers to submit any additional information beyond what they do now, change deadlines for submitting VAT returns or remove agents from the VAT reporting process.
ACS’ guidance details how retailers can prepare for keeping digital records, finding MTD-compatible software providers and joining the VAT pilot. The pilot is open to retailers once they have compatible software to allow them to get familiar with the new HMRC service before it becomes a legal requirement.
ACS chief executive James Lowman said: “We are pleased to publish this guidance explaining what convenience retailers will need to do to be compliant with MTD in time for April. After securing a delayed rollout for MTD we have been working closely with HMRC on how MTD works for retailers and are glad they have signed off this guide. Moving forward we will continue to engage with both HMRC and retailers to ensure that the new reporting procedures are implemented as smoothly as possible”.
The ACS Making Tax Digital Guide is available here.