Making Tax Digital (MTD) for VAT-registered businesses
Obligations from 1 April 2019 onwards
Although the Making Tax Digital (MTD) regime has suffered several setbacks and delays, MTD for VAT remains on course to take effect from its planned implementation date of 1 April 2019.
Under the scheme, VAT-registered businesses are required to maintain digital records, complete their VAT returns from the digital records and submit them digitally to HMRC as opposed to the current submission option on the website.
You may have questions about:
- Which businesses are affected?
- Digital records
- The VAT account
- What is ‘functional compatible software’?
- Completing and submitting VAT returns
The countdown has begun and VAT-registered businesses need to start getting ready.
It’s important to understand what is required and what records must be held digitally. It’s also important to decide what type of software will suit the business, and whether that be cloud based, desktop based or using exiting options and a bridging software.
Once you have decided, you should make checks to ensure everything is up and running by the relevant start date.
HMRC has promised a soft landing – but, as always, it pays to be prepared.
At SFB Group, we have formed close relationships with several preferred suppliers of compatible software and can help you to seamlessly implement an appropriate system, including any user training you need. And don’t forget, if the idea of learning to use new software isn’t for you, you could take advantage of our complete bookkeeping service, taking the headache out of MTD compliance.