Are you ready for Making Tax Digital?
The first phase of Making Tax Digital for VAT comes into force from 1 April 2019.
Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs - meaning the end of the annual tax return for millions.
HMRC aims to have all VAT registered businesses reporting their VAT records digitally and sending quarterly updates electronically from this date onwards.
From April 2019 your VAT registered businesses will need to submit tax records digitally to HMRC and not via the HMRC website. This will only apply to VAT records from 01 April 2019 onwards.
Other tax records will not be required to be submitted digitally until April 2020 at the earliest, i.e. Self-Assessment, Corporation Tax.
The data required to be submitted digitally includes the following:
Time of Supply – Tax Point
Value of Supply – Net excluding VAT
Rate of VAT charged
Your business name, address, VAT registration number and details of any VAT scheme in use
A list of software companies which are MTD compliant is available via the HMRC website.
Spreadsheets can still be used but you will need to ensure that they can be digitally submitted to HMRC and a bridging software/app may be required to transfer the relevant information correctly to HMRC.
The deadline for compliance for MTD VAT is 31 March 2020.
More information of MTD and compatible software etc can be found here
If you need further assistance or have any questions regarding Making Tax Digital please contact Sara Jaconelli email@example.com - call 07894 098132