Making Tax Digital (MTD) for VAT
MTD for VAT takes effect from 1st April 2019.
This means that digital records are required to be kept and only a digital submission will be accepted by HM Revenue & Customs for VAT returns periods commencing on or after 1st April 2019.
You still have the choice to use either cash accounting or invoice basis, the various margin schemes will also be continued, as will the flat rate scheme.
All VAT returns are currently submitted via HM Revenue & Custom's online portal. This portal will not be available going forward for VAT registered businesses with a turnover in excess of £85,000.
It is therefore vital if you have not already done so to take steps to become MTD compliant.
Step 1 - Decide on software
Most businesses have found that the easiest option is to choose a cloud accounting solution, the reason for this is all the data is held centrally allowing for easier access and the data can be shared with us to assist with year end accounts preparation etc.
Other software is available, and there are various other options in the market place that would allow you to continue to use spreadsheets for example. You would also need to have an active API in place to digitally transfer the data to HM Revenue & Customs.
Step 2 - register / sign up
If you would like to use Sage Cloud Accounting, Novis & Co's preferred software then please contact Lindsay Tucker (Lindsay@novis.co.uk - 0113 2525911) and she will be able to discuss the software options with you, and provide you with a licence if you wish to proceed.
If you would like to use a different piece of software then you will need to register for this ahead of April 2019.
Step 3 - consider training
Organise training to have a good understanding of the software.
Here at Novis & Co, we offer fixed price training to support you with the change to digital accounting. For full details please contact Lindsay Tucker.
Step 4 - Government Gateway
Once your software is up and running, you will need to update your Government Gateway ID so that you will be able to submit MTD compliant VAT returns.
This is a straight forward process, your Government Gateway ID will remain the same, it simply needs to be updated, you do this online.
We currently provide VAT return submission services via our sister company, Novis Business Services LLP to a large number of clients, these will continue. If we currently submit your returns then we will ensure that your Government Gateway has been updated. We will have also been discussing with you the best route to take and in all likelihood the software has already been licenced and is operational.
If you would like to know more about our VAT services then please do not hesitate to contact either Claire Howarth or Stephen Tucker who will be happy to discuss this further.