Keeping Records for Making Tax Digital
From 1st April 2019, VAT registered businesses with turnover over the registration threshold (currently £85,000) will be required to submit their information under the Making Tax Digital (MTD) regime. This will require you to keep records digitally and submit them to HMRC on a regular basis using MTD compliant software. The HMRC list of compliant software, as reported in previous issues, can be found here. (www.tax.service.gov.uk/making-tax-digital-software). The available options include bridging software, which helps convert spreadsheet records into a format that is compliant with the MTD submission formats.
However, of concern to many is that they will also need to keep their receipts digitally. Fortunately this is not the case. Whilst there are many apps that will scan and record receipts, and even transfer the information into some accounting software, electronic receipts are not yet mandated. As long as you keep the receipts to back up your accounting records in some form, it is only the transactions records themselves that need to be maintained in a digital format.
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