MTD for VAT – Are you ready?
My blog this month is about Making Tax Digital for VAT.
From the 1st April 2019, any businesses that are VAT registered and have VATable turnover over the VAT threshold (currently £85,000), will be required to submit their VAT returns digitally. This is for all VAT returns starting on or after 01st April 2019. So if you submit quarterly VAT returns, the first MTD return will be for the first period starting after 01/04/2019.
Most businesses (limited companies and sole traders) will already know about this. But, what does it mean in practice?
It means that if you currently submit your VAT return by entering the totals figures manually on to a system (for example the HMRC website) you will no longer be able to do this. There will be a requirement that VAT records are kept digitally and the VAT return is submitted from this information. The key here is that you cannot rekey the totals manually from your VAT calculations on to the VAT return. So, if you currently use a system such as a spreadsheet to work out your VAT return you will need compatible software or bridging software to ensure that your VAT return can be sent to HMRC.
If you already use accounting software check with your software provider to ensure that they are/will be MTD compatible by 1st April 2019.
If you are using an older version of an accounting software product it is important to check whether this particular version is compatible. It maybe you will have to move to a newer version of the product.
As always if you have any queries about this or any other accounting issues or want any further information do feel free to contact me :
or visit my website