Making Tax Digital (MTD) for VAT - Are you ready?
On the 1 April, no this isn’t an early April Fool’s spoof, MTD for VAT goes live. Placing a requirement for VAT registered businesses (with Turnover’s above the threshold) to keep business records digitally and to submit their VAT return in a digital format. This applies to your first return where the VAT period commences after 1 April. So from 1 April at the earliest to 1 June at the latest depending on your VAT return cycle.
There is lots of information and dis-information out there so if you are unsure please ask HMRC or your accountant.
If previously you have kept your records in manual ledgers then you need to undergo the biggest change. From 1 April you will need to keep digital records and file digitally.
If you have previously kept all your records on spreadsheet then you still can but your spreadsheet may need modifying slightly to produce the nine box VAT Summary. You will then need a bit of software that will send the nine box return to HMRC and receive feedback from HMRC digitally. This has been called bridging software.
Looking at the pricing of some of this bridging software it may be worth moving onto accounting software on a digital platform. This will future proof you should HMRC decide in the future that spreadsheets are no longer acceptable and position you for the next major change MTD for Income and Corporation taxes.
So are you ready? We are and please feel free to contact us if you have a question or need advice.