Making Tax Digital for VAT, I already file online so I’m compliant, yes?

Businesses have been required to file quarterly VAT returns to HMRC electronically for a number of years now. However, this does not mean a VAT registered business is MTD compliant.

Currently 99% of VAT returns are filed online, however only around 15% are filed via software. This means that the majority of businesses are using the government gateway service to file VAT returns and are manually uploading information to this on a quarterly basis. If a business is filing VAT returns in this way they are not MTD compliant.  This service will cease to be available for the majority of businesses once MTD comes into force.

MTD for VAT begins for all VAT registered businesses from the first VAT period commencing post 1 April 2019. From this date businesses will be required to maintain their records digitally and file their VAT returns directly from software.

If a business has voluntarily registered for VAT it will not be compulsory for that business to comply with the MTD requirements. However, if a business is submitting non-standard returns or is registered with the VAT annual accounting scheme they will be required to maintain their records digitally and submit returns directly from software.

All VAT registered businesses should be talking to their advisers as soon as possible to ensure they will meet all the MTD for VAT requirements by 1 April 2019.

At MHA Moore & Smalley we appreciate that there is no one solution which will work for all businesses. We will work closely with businesses to find the solution that works for you, working with bespoke software providers where required. Keeping records digitally can have a number of benefits for businesses including:

  • Cloud technology – Allowing bookkeeping to be undertaken anywhere;
  • Intelligent bank reconciliation – reducing a significant amount of time each month;
  • Invoicing on the go;
  • Track employee billable time;
  • Capture expenses on the move and
  • Powerful live reporting as standard.

If you would like to discuss this further, please contact Victoria Dadswell. Alternatively, please call 01524 62801.