Money Box Live: Making Tax Digital

Money Box

BBC

Business

4.2 • 825 Ratings

🗓️ 24 October 2018

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

A big change to the UK's tax system starts next April, but are firms ready to comply?

In barely five months' time, every business which is above the threshold for VAT must ditch paper-based record-keeping and get new approved software instead. The new rules are part of Making Tax Digital - and make it compulsory for them to keep electronic records of VAT and file returns to the Revenue directly from accounting software. It will apply to small businesses and sole traders if they are VAT-registered and have a turnover - not a profit, a turnover - of £85,000 a year or more.

But accountants are worried that many businesses don't know anything about the changes. And there's concern about how much the new software will cost.

If you're affected by the new rules or think you might be, get in touch. Call 03700 100 444. Lines are open from 1pm on Wednesday 24 October. Or email moneybox@bbc.co.uk or tweet @moneybox

Guests: Anita Monteith, Tax Manager, Institute of Chartered Accountants in England and Wales Elaine Clark, Managing Director, Cheap Accounting Andy Chamberlain, Deputy Director of Policy, IPSE (the Association of Independent Professionals and the Self-Employed)

Presenter: Paul Lewis Producer: Sally Abrahams

Transcript

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0:00.0	You're about to listen to a BBC podcast, but this is about something else you might enjoy.
0:05.4	My name's Katie Lecky and I'm an assistant commissioner for on demand music on BBC Sounds.
0:10.8	The BBC has an incredible musical heritage and culture and as a music lover, I love being part of that.
0:17.5	With music on sounds, we offer collections and mixes for everything, from workouts to
0:22.4	helping you nod off, boogie in your kitchen, or even just a moment of calm. And they're all put
0:28.3	together by people who know their stuff. So if you want some expertly curated music in your life,
0:35.0	check out BBC Sounds.
0:41.2	BBC Sounds, music, radio, podcasts.
0:45.2	Welcome to the download of Moneybox Live, the program about your money.
0:47.5	Today, making tax digital.
0:53.3	Hello, in barely five months' time, every business which is above the threshold for VAT,
0:56.0	will have to use new approved software to keep at least some of its VAT accounts and report its quarterly figures to HM Revenue and Customs.
1:01.9	It's called Making Tax Digital or Making Tax Difficult, as one listener has dubbed it recently,
1:07.6	and it starts in April.
1:09.2	Making Tax Digital is a long-term project to make all
1:11.9	businesses and self-employed people keep their tax accounts in an approved way and send summary
1:16.9	data every three months to the revenue. But after delays and postponements, partly due to the
1:21.9	extra work of Brexit, only this first stage for VAT is now imminent. It'll apply to small businesses and sole traders if their VAT registered and have a turnover, not a profit, a turnover of £85,000 a year or more.
1:37.3	Well, I have three specialists with me to explain what this does and doesn't mean.
1:41.8	First, Anita Montaith.
1:43.5	She's a technical tax manager at the Institute of Chartered Accountants in England and Wales.
1:49.2	Anita Montief, you've been critical of HMRC over making tax digital.
	...

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