BADA and LAPADA have alerted their members that any business with an annual taxable turnover more than the VAT registration threshold (currently £85,000) should keep digital records, writes Noelle McElhatton.
As part of the Making Tax Digital programme, from April 1, VAT returns will need to be submitted directly using software compatible with HMRC’s digital platforms. One concern is how the required software will manage margin scheme claims. Art market accountant Catherine Thompson, director of Rawlinson & Hunter, told ATG she was “not aware of any specific software in place currently that deals with margin scheme VAT calculations”.
However, HMRC will “allow such adjustments to be performed outside the software and to be entered into the software manually,” she said.