As of April 1 2019, half a million VAT registered UK businesses have to comply with the new taxation standard Making Tax Digital. VAT registered businesses must now keep digital records of their transactions and submit VAT returns using a digital link to HMRC.
From April 2019, quarterly reporting is:
- Mandatory for VAT for all VAT-registered businesses with a turnover above the VAT registration threshold (£85,000)
- Optional for VAT-registered businesses with a turnover below the VAT registration threshold (£85,000)
From April 2020 (at the earliest), quarterly reporting is:
- Mandatory for income tax and corporate tax (as appropriate) for all businesses (including landlords) with a turnover over the VAT registration threshold (£85,000)
- Optional for businesses (including landlords) with a turnover below the VAT registration threshold (£85,000)