Fish and chip shops with an annual turnover above £85,000 are being urged by HM Revenue and Customs (HMRC) to sign up to Making Tax Digital before the 7th August VAT filing date.
Many of the 1.2 million businesses affected by the MTD rules, which became law for VAT periods starting on or after 1st April this year, will be required to submit their first quarterly VAT return to HMRC using software by 7th August. If paying by direct debit, these businesses must register by Monday 29th July.
MTD was first announced in 2015 with the aim of making it easier for businesses to get their tax right, reducing tax lost due to avoidable mistakes.
It requires VAT-registered businesses with taxable turnover over £85,000 to keep their VAT records digitally and to submit their VAT return direct from their MTD-compatible software.
HMRC has confirmed that during the first year it will not be issuing filing or record keeping penalties to businesses it believes are doing their best to comply.