Making Tax Digital: Paper VAT Returns Will Still Be Accepted
HM Revenue & Customs (HMRC) have moved to reassure some farmers that paper returns will still be accepted when Making VAT Digital comes into force in 2019.
Under the new system, which commences 1 April 2019, businesses operating above the VAT threshold of £85,000 are required to keep digital records and submit VAT returns online. However, HMRC have confirmed that, provided you fall under one of the approved exemptions, businesses that currently submit offline returns will be able to continue to do so.
The three main exemptions are:
- Those who object to using computers on Religious grounds.
- Those who don’t use the internet because of age, a disability or because of where they live, e.g. no internet access.
- Businesses that are subject to an insolvency procedure – if a Company Voluntary Arrangement, or Individual Voluntary Arrangement exists.
HMRC Making Tax Digital initiative aims to move all tax submissions online by April 2020, and has already been delayed several times to give businesses more time to adapt to the changes.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.