As announced at our recent Tax Conference, accounting firm PwC has developed a software package to help businesses comply with the new Making Tax Digital (MTD) requirements and to deal with certain aspects of the rules, most notably the requirement to file the VAT return digitally using certified software.  While these simpler solutions will incur a small charge for most taxpayers, PwC plans to offer free access to this software to charities, which may struggle to meet the costs of this new requirement.

The exact details of the offer will be announced in due course but PwC has committed to helping the charity sector manage the administrative burden associated with transitioning to the new regime.

From 1 April 2019, taxpayers will need to hold certain information digitally and must submit their VAT return data to HMRC digitally using certified software. Businesses and all other VAT registrants with a turnover above the VAT registration threshold, including charities and their trading subsidiaries, will be affected by this change.

For more information on Making Tax Digital requirements, click here.