Making tax Digital - Part twoAre you ready for Making Tax Digital (MTD)for VAT

Making Tax Digital (MTD) for Vat is inching ever closer are you ready?

From April 2019, businesses that are registered for VAT AND who have turnover above the VAT registration threshold (currently £85,000) will have to comply with Making Tax Digital (MTD) for VAT.

This includes sole trade businesses, partnerships, limited companies, LLPs, and charities.

To comply with Making tax digital (MTD) for VAT a business must….

  1. keep digital records (using MTD compatible software) for VAT purposes
  2. submit their VAT return to HMRC through MTD compatible software (HMRC’s online portal cannot be used)

 

So, for all VAT periods that begin after 1st April 2019 a business must keep all their accounting records in software AND critically file its VAT returns digitally through the software.

How does this affect you…?

During 2018 software providers will be upgrading their software so that their users will be MTD compliant.

HMRC have just published a list of just 18 software providers which have been tested and work.

If your accounting software is on this list, then you can relax – when MTD comes in you’re ready and will comply.

Unsurprisingly both Xero and QuickBooks being two of the big cloud accounting software providers, are on the list.

HOWEVER, if you are either using spreadsheets (i.e. don’t use software) OR an old version of desktop accounting software OR software that isn’t on the list below then there is a real risk that you will not be ready in time to comply by next April. That could result in you incurring fines for being unable to file a VAT Return.

If use software, then it is imperative that you check them that your version of the software is MTD compliant or it will be by April next year!

If you don’t use software, then you need to take action NOW so that you have a solution. In place by April 2019.

 

The list of 18…..(in alphabetical order)

 

1 Accu-Man

2 Ajaacts

3 BTCSoftware

4 Bx

5 Clear Books

6 DTracks

7 eFileReady

8 Farmplan

9 Go Simple Software

10 Intuit – QuickBooks

11 IRIS

12 Liquid Accounts

13PwC

14Quickfile Accounting Software

15 Sage (UK)

16 Simplifi-HQ

17 Tax Optimiser

18 Xero

 

If your accountant hasn’t shared this information with you then maybe it’s time to get a second opinion on what can be done to get you ready.  

If you are not on software , are you aware that you won’t be able to use the existing method for filing VAT returns from April 18 if you are over the VAT threshold?

If you’d like to speak to us on this or any other accountancy and business development issue then call us on 0161 410 0020

 
For more information on this visit HMRC – www.gov.uk/government/publications/software-suppliers-supporting-making-tax-digital-for-vat/software-suppliers-supporting-making-tax-digital-for-vat

 

It is important that you take professional advice before making any decisions based on the information that you learnt here. While every effort has been made to make sure it is accurate it cannot be precisely tailored to your personal circumstances.

Tags: , , ,

Get in touch

0161 410 0020
info@kmaaccountancy.co.uk

KMA Accountancy
Progress House
17 Cecil Road
Hale
Altrincham
Cheshire WA15 9NZ

Latest news

KMA Goldmine TV – Episode 31 – Good, Fast and Cheap?

In this weeks Episode 31 Of KMA Accountancy's Goldmine TV Kim talks about the concept of getting a product or service good, fast and cheap is it possible to have...

KMA Goldmine TV – Episode 30 – Discounting your prices?

Welcome to Episode 30 of KMA Accountancy Goldmine TV, in this Episode Kim talks about discounting your prices and the effect it can have on profitability.

Tweets @KMAltd