As we enter another new year, thoughts turn to what the future will hold. For HM Revenue & Customs (HMRC) the future is a digital revolution to fundamentally change the way that tax information is collected. These changes are being referred to ‘Making Tax Digital’ (MTD).
The requirements will start in April 2018 for some businesses, with the aim for the roll-out to be completed with a fully digital system by 2020.
There are currently a number of ongoing consultations to fine tune the exact way that MTD will operate, but the key elements are that businesses will be required to keep digital records and to submit quarterly updates of key income and expenditure information to HMRC. A final end of year return will also still need to be submitted.
Many of our clients in the motor dealer sector already have sophisticated accounting software but often these are bespoke or specialised packages. Dealers will need to review their software with their providers to ensure that it will be compliant with the requirements to be able to submit the necessary information in the required digital format. The internal accounts teams will also need to ensure that they are geared up to process and review the data being submitted each quarter by the due deadlines.
Given the potential scale of the changes and the implications that they may have on how businesses report, Larking Gowen has introduced a dedicated page on our website, which is kept up to date with the latest developments.
If you would like any further information on how the changes may impact you, please call our specialist motor dealer team on 01603 624181 or email email@example.com