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Making Tax Digital is coming… How will it affect you and your business?

The Making Tax Digital (MTD) for VAT deadline is drawing closer. It’s less than a year until UK businesses that are VAT registered and above the threshold will be required to keep their records digitally, and submit VAT returns to HMRC using MTD-compatible software.

From April 2019, business who have a turnover above the VAT threshold will be mandated to use the Making Tax Digital for Business system, meaning records will need to be kept digitally and submission of VAT returns to HMRC will need to be done using a MTD-compatible software

Making Tax Digital

So how will this affect you?

Are you already using one of HMRC’s suitable software suppliers to record your data, such as Xero or QuickBooks Online?

If the answer is yes, then you do not need to do anything. Just carry on recording your data as you have been (with maybe a few tweeks) and you are good to go.

 

What if I don’t use Xero or Quickbooks Online?

HMRC have published a list of the software suppliers which are suitable here.

 

My software isn’t on the list

HMRC are updating the list as the testing progresses, so it may appear in the next few months as an approved supplier.

 

I record my data manually using Excel spreadsheets

If you are VAT registered, then unfortunately this will no longer be an option, and you will need to migrate over to one of HMRC’s suitable software suppliers.

 

Migrating over sounds like a timely process, and I am not sure what to do or who to use!

We can take away the hassle of making sure you are using the correct software for your business, migrate over your information, and give in-depth training on how to record your data to make sure you are compliant. Give us a call today to find out how we can help you.

 

I am not over the VAT threshold, so does that mean I don’t need to worry?

For the time being, no. However, Making Tax Digital will be introduced to all businesses, including those under self-assessment, in the not so distant future. So why not be prepared well in advance, and set yourself up now, so you’re not making a mad dash towards the deadline?

There are also many benefits of using a cloud accounting package, not just to be compliant with HMRC, which you can find out here.

 

Come and talk to us today to see how we can help streamline your business.

 

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