Making Tax Digital for VAT
VAT registered businesses are receiving another letter from HMRC regarding Making tax Digital for VAT. It recommends that you talk to your accountant about MTD, we agree but we thought it would be helpful to summarise the position in this article.
Making Tax Digital begins on 1 April 2019 with MTD for VAT (it applies to the first VAT period starting on or after 1 April 2019) . From that date, VAT-registered businesses with turnover above the threshold of £85,000 will have to keep digital records and submit VAT returns using compatible software.
If your accounts are based on manual records or spreadheets then you need to take advice right now, please call us. Whilst it will be possible to use bridging software in the short term we are strongly advising our clients to adopt a cloud based accounting solution to address MTD.
If you accounts system is computerised we list on the MTD page of our website various software and it's compliance with MTD. If your system is not listed here please call us for advice.
If you are still using desktop software now could be the perfect time to move to the cloud. We have years of experience in migrating our clients to the most appropriate solution for their business. We are experts in Xero, Quickbooks Online and FreeAgent the three premier solutions for small and medium size businesses.
If MTD for VAT impacts you, you should talk to us about registering for with HMRC. If you are already using our VAT service then we will arrange registration on your behalf.
Before you register You must make sure that you either get compatible software or that the software you already use is suitable for Making Tax Digital.
Please contact us with any queries.