Tax is changing for businesses, accountants and bookkeepers.
What is Making Tax Digital (MTD)?
Making Tax Digital (MTD) is a key part of HMRC’s plans to make it easier for individuals and businesses to get their tax right.
Making Tax Digital is making fundamental changes to the way the tax system works. It aims to transform tax administration so that it is more effective, more efficient and more accurate.
Making Tax Digital for VAT
HMRC has taken a major step forward with the introduction of Making Tax Digital for VAT.
VAT-registered businesses with a taxable turnover above the VAT threshold are now required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns for VAT periods that started on or after 1 April 2019. The exception to this is a small minority of VAT-registered businesses with more complex requirements.
- Get the right software
Find compatible software. Before you sign up, you must have software that:
- lets you submit VAT Returns
- is compatible with Making Tax Digital for VAT
- Sign up for Making Tax Digital for VAT
Sign up for Making Tax Digital for VAT at least one week before your VAT Return is due.
You’ll receive an email within 72 hours to confirm that you can submit returns using software that’s compatible with Making Tax Digital for VAT.
After you’ve signed up, you cannot use VAT online services to send VAT Returns.
- Authorise your software
Before you can send VAT returns, you’ll need to authorise your software.
If you’re already an existing client of Elevation Accountancy, then you have nothing to worry about because we’re MTD ready!
Making Tax Digital Software
Business records will need to be kept in a digital format and submitted to HMRC using MTD compliant software ever quarter.
Modern online accounting packages such as Xero, Sage Business Cloud Accounting, QuickBooks Online and FreeAgent will have software ready for MTD for VAT in time for April 2019 and offer a host of other benefits to assist businesses.
Elevation Accountancy has a team of specialists who can provide expert advice and support on the best option for your business to ensure MTD compliance, as well as provide training and assistance on how to use new software and maximise the benefits it can offer.