The Making Tax Digital (MTD) for VAT mandate is now just weeks away.
MTD for VAT becomes compulsory for most VAT registered businesses with a taxable turnover above the £85k VAT threshold from 1 April 2019.
The key thing to consider for affected businesses is software…
If you are using up-to-date software (such as Xero, Quickbooks, Sage etc.) for your financial recordkeeping, the changes should be straightforward. However, the software needs to be current (i.e. older versions of Sage won’t hack it)! If in doubt, please ask us.
HMRC recently published a list of compatible software packages that are compatible with MTD for VAT here: https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-vat
If you’re not using software at all, you have to use a spreadsheet and digitally link it with another piece of software to the HMRC MTD form. You will not be able to complete the form by entering figures manually. We have the software needed to link a spreadsheet, so if you want us to do this for you, please let us know immediately.
We’ve been busy preparing our clients for the upcoming changes but if you know of a business that hasn’t made – or needs help making - the necessary arrangements, please put them in touch!