Overcast

Overcast

max temp: 13°C

min temp: 9°C

Search

Businesses in the East of England are unprepared for new digital tax rules

PUBLISHED: 11:14 04 October 2018 | UPDATED: 11:33 04 October 2018

Anne Holt, VAT partner at RSM in East Anglia. Picture: Tony Plumb

Anne Holt, VAT partner at RSM in East Anglia. Picture: Tony Plumb

Archant

New research suggests that as many as 87,000 VAT-registered businesses in the East of England are unprepared for new digital taxation rules which come into force from next April.

There are close to 300,000 VAT-registered businesses in the East of England, but analysis from audit, tax and consulting firm RSM carried out by YouGov suggests that up to one third of businesses are unprepared for the new rules.

Making Tax Digital (MTD) is the Government’s ambitious plan to bring the UK’s tax system into the 21st century.

With only a few exemptions, VAT-registered businesses trading over the VAT threshold of £85,000 will be required to keep records in a digital format, ensure that the transfer or exchange of VAT information is digitally linked, and submit their VAT return information to HMRC using MTD compatible software.

Any business affected by these changes must ensure that they are using MTD compatible software by April 2019. To be ‘compatible’ the software must include an Application Programme Interface (API).

HMRC has indicated that there will be a ‘soft landing’ period between April 2019 and April 2020 during which there will be no financial penalties for record keeping failures arising from the new rules, but there must be an API from the outset, creating a link between the accounting software of the business and HMRC.

Anne Holt, VAT partner at RSM in East Anglia said: ‘Making Tax Digital is one of the biggest shake-ups in tax administration for over 20 years. But with just six months to go before the rules come into force, a worrying number of VAT-registered businesses are completely unaware of the changes.

“VAT-registered businesses really need to make the next six months count, to ensure that their software, systems and people are all ready for the change.”

To assist businesses to prepare for the change, RSM is hosting a series of workshops across the country. Further details are available at https://www.rsmuk.com/events/making-tax-digital-events.

Search hundreds of local jobs at Jobs24

Ipswich Town supporters were among the best behaved fans in the Championship last season, according to a league table of bans for violence and disorder.

Catering staff at Ravenswood Primary School are serving up 225 hot lunches every day - and an increasing number of those are tailored for children suffering from fish, milk and gluten intolerances.

A pub licensee who punched a customer and then smashed him over the head with a pint glass has been jailed for 19 months.

Our Throwback Thursday feature returns once again - and this week we look back to November 1982 and what was going on in and around Ipswich.

Community leaders in Felixstowe have agreed to spend £68,000 to fund an extra police officer for the town to deal with specific problems.

Martin Roberts had nothing but praise for Ipswich after he visited with the film crew from BBC series, Homes Under The Hammer this week.

For a second year in a row Ipswich Central will bring a real tree to the town centre.

The staff at an Ipswich travel firm are celebrating their 30-year-anniversary in Ipswich alongside everyone’s favourite elephant - Elmer.

The first new Swiss-built train for Greater Anglia has arrived in the region – being pulled from the Channel Tunnel, around London and along the main line to Norwich early on Thursday morning.

Have you always dreamed of running your own business from home? This property is perfect for that with its 46ft renovated barn/office space. Take a look inside here.

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Ipswich Star daily newsletter
Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24