Making Tax Digital Moves Up A Gear
Is your business ready?
POSTED BY ROGER EDDOWES ON 13/08/2018 @ 8:00AM
HMRC's relentless march towards Making Tax Digital for businesses in the United Kingdom moves up a gear with the publication of the details for the VAT part of the programme ...
Making Tax Digital for VAT comes into force on 1st April 2019. Essendon is ready to help you!
copyright: kantver / 123rf stock photo (licensee)
The document contains information from HMRC that will help accountants and tax advisors to fill in the gaps where the law is deficient. If your business needs to follow the new MTD rules from 1st April 2019 then you'll need to take professional advice soon.
Although there is extensive information in HMRC's document, there are a couple of sections that will be of most interest:
VAT-registered businesses with a taxable annual turnover below the VAT registration threshold of £85,000 don't have to follow MTD rules, but if they wish to do so they must tell HMRC in writing.
Businesses above that threshold that wish to claim exemption from the Making Tax Digital rules on the grounds of religion, insolvency, or because it is not reasonably practicable to use digital tools, will have to ask HMRC to approve the exemption or provide them with digital assistance.
Not fully working
The VAT notice confirms that the full MTD service won't be available from HMRC when Making Tax Digital for VAT goes live in April 2019. Businesses won't be able to submit voluntary updates or supplementary data to support their VAT return. These features will be available at a later date according to HMRC.
Any information required for the VAT return must be kept in digital form using compatible software. Thankfully, the business doesn't have to keep a digital image of every invoice or purchase order.
Some permanent information about the business must also be recorded digitally such as the name, address, VAT number and any VAT accounting scheme used.
Many suppliers have demonstrated prototypes of their MTD compatible software to HMRC who have tested their products within the HMRC test environment. Xero is included in this list.
As always, the right accounting software can make a huge difference to your business and as Essendon are a Xero Gold Partner, we can produce all of the reports, statements and returns you will need to ensure that your Making Tax Digital VAT returns are penny perfect and submitted on time.
"Would you like to know more?"
Essendon is ready to help you with Making Tax Digital for VAT coming into force on 1st April 2019. If you'd like to find out more, then do give me a call on 01908 774320 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking to work with a leading firm of accountants, then why not visit our website which you can find at www.essendonaccounts.co.uk and let's see how we can help you!
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves ‘getting his hands dirty’, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.