As we have outlined in recent posts, change is upon us and come the end of March next year, the combination of Brexit and the advent of Making Tax Digital (MTD) will change much that we have taken for granted.
Apart from the cross-border considerations (import VAT, customs duties and the like) MTD will require all affected businesses to link with HMRC by using approved software.
The time to figure out the best strategy to survive these changes need to be considered now. Businesses should be taking time out to draw up contingency plans, and if possible, before March 2019.
The main problem is that our politicians, or at least those involved in the exit negotiations, appear to be dragging their feet; with little more than six months to the 29 March deadline, we still don’t know if there will be a negotiated “divorce” with the EU, or if the borders with Europe will simply close on the appointed day.
Rumours of motorways being used as car-parks, the stockpiling of medicines and other “essential” goods are commonplace as the clock ticks down. All of which does not inspire confidence.
Many of our clients are already engaged in the serious matter of contingency planning. This has involved consideration of their risk – from Brexit in particular – and strategies to minimise loss of cash flow and profitability.
MTD, ironically, although a radical change, only requires affected VAT traders to invest in the IT and software to cope with the link to HMRC’s online systems.
It you are reading this post and thinking that perhaps you should start thinking about your options for next year, please give us a call. One advantage of working with our team is that we already have experience of brainstorming options with clients. Please don’t leave this planning imperative until after March 2019, you will likely regret your decision.