Farmers have been told to get to grips with the Government's new 'Making Tax Digital' scheme which comes into force in April 2019.
The new scheme comes into force in April next year and will see millions of businesses and self-employed people having to file multiple tax returns each year.
In the rural sector, farming and other rural businesses with turnovers above the current £85,000 VAT threshold will fall within the new Making Tax Digital (MVD) regime.
Once in, they stay in, even if their turnover falls below that level at a future date. VAT registered-businesses whose turnover is below the VAT threshold can opt in to MVD if they wish.
The Farmers’ Union of Wales (FUW) is one group urging farmers to get ready for the change, especially as some farmers and rural businesses fear lack of internet access will be an obstacle.
FUW Denbigh and Flint CEO, Mari Dafydd Jones said: “There are many farm businesses who from April next year will be required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns. Businesses will no longer be able to submit paper tax returns.
“To help them better understand what is required of them and what tools are available to comply with the new way of submitting your tax return, we have teamed up with the accountants at Wittingham Riddell, who will explain how ‘Making Tax Digital’ will affect you. These information evenings are free and open to all - so please don’t miss your chance to get to grips with the new requirements.”
The events by the union are held on Wednesday, 5 December at Denbigh Golf Club in Denbigh and on Monday, 10 December at Lord Moreton, Wrexham.
What does MVD entail?
Businesses within the regime will need to keep digital records and use MVD compatible software to submit their VAT returns.
Initially there is no change to dates for filing returns or to the nine boxes of information required when submitting the VAT return.
HMRC has said that the system will allow businesses to submit supplementary information should they wish to do so. Businesses will also need to keep digital VAT records to support the VAT returns submitted.
David McGeachy, Head of VAT at UK top 20 Chartered Accountant Saffery Champness says: "One of the biggest challenges will be the switch to compatible software with only around 12 per cent of all businesses currently filing their returns using a software package."
Mr McGeachy said that the switch from manual calculation and reporting is going to require a "quantum leap" for some.
