Making VAT Digital - How might it affect dealers
HM Revenue and Customs (HMRC) have introduced new legislation to digitise the tax system and the way businesses maintain their records. This will come into effect from April 2019 which now gives dealers less than six months to prepare for the change.
Any VAT-registered business with a taxable turnover in excess of £85,000 will be required to comply with the new regulations in respect of the first VAT return to be filed after 1 April 2019. Dealers and associated businesses will be required to keep digital accounting records and file VAT returns directly with HMRC via an online software package. For most dealers this means that the VAT return ending June 30th 2019 must be submitted electronically.