Comply with new digital tax rules or risk fines, says Lamont Pridmore
A Cumbrian accounting firm is warning businesses they could be in shock if they fail to comply with new digital tax rules.
Lamont Pridmore warns that hundreds of county businesses will face penalties if they fail to comply with Making Tax Digital for VAT.
From early April, VAT registered businesses with an annual taxable turnover of less than £85,000 must now comply with HM Revenue & Customs’ (HMRC) flagship digital tax system and new e-filing requirements.
Mandatory digital process compliance has been in place since April 1, 2021.
According to HMRC, only around a third of VAT registered businesses with taxable turnover below the threshold voluntarily registered with MTD for VAT before the deadline.
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The switchover requires businesses to register and report their VAT cases digitally each quarter using one of two methods – a transition tool or HMRC-recognized and fully compatible MTD software solutions – which the transition tool connects non-BAT software such as spreadsheets to HMRC systems.
Graham Lamont, Managing Director of Lamont Pridmore, said: “We understand that many small businesses already have to make tough spending and investment decisions, but if they don’t comply with the new BAT rules, they could facing heavy penalties all along the line.
“While the latest cloud accounting solutions may seem more expensive, in the long run they can deliver incredible insights and automation that ultimately help many businesses save money and spot risks and new opportunities. .”
Graham added that HMRC has made it clear that it expects every business to do ‘everything possible to comply’ with the new rules and he fears there will be significant penalties for those who fail to act now. .
Chris Lamont, Partner at Lamont Pridmore, said, “We have already helped hundreds of other companies implement compliant systems within their operations, which has not only facilitated new recording and reporting requirements , but also automated many day-to-day financial functions. .
“In addition, our clients now have a much clearer picture of their business’ financial health in real time, which has proven invaluable to many during the decision-making process.”
If you have not taken steps to become MTD compliant, you can contact Lamont Pridmore by visiting www.lamontpridmore.co.uk or calling 0800 2346978.
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