Making Tax Digital (MTD) will become a reality for all business no matter their size in 2020.
Sharon Pocock, of accountants Kinder Pocock at This is Money explains what you need to know.
It is a new initiative from HMRC designed to simplify tax and give businesses better control of their finances. Right now, the new rules are compulsory for businesses with a taxable turnover above the VAT threshold of £85,000.
These businesses have to use compatible software such as Xero and others from this list, to keep their records digitally and submit VAT returns to HMRC quarterly.