THE BUSINESS EDIT – VAT RETURNS, THE NEW RULE
23 Nov 2018
Written by Alice Smithson
Here at iSalon, we love discussing technology within the hair, beauty and barbering industries, but as always, we like to ensure our clients are in the know, especially when it comes to important matters regarding their business. It’s our job to inform and ensure you are up to date with new rules and regulations.
So, just in time for Christmas, the Government has released new rules for VAT Returns, which will change the way salons do their VAT Returns. The governments Making Tax Digital (MTD) rules mean you will have to keep digital (electronic) VAT records and file your VAT returns using MTD Compatible software. MTD is a key part of the governments plans to making the submission process easier both for the individual and business, and ensuring businesses are on top of this at all times.
This will mean a huge change to the salons who submit via excel spreadsheets and normal documents, as both formats will no longer be allowed. VAT registered businesses with a taxable income turnover above the VAT threshold bare required to use the MTD service from 1st April 2019.
There is however an exception to this, for those of the small minority VAT registered businesses who are slightly more complex. For those in a more complex situation, the decision to delay the process until 1st October 2019 has been approved.
We suggest checking with your accountant to ensure your business is up to date on the latest requirements.
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