Making tax digital (MTD) for VAT is coming. Are you prepared?
Since mainstream Making Tax Digital (MTD) was delayed but the VAT registered businesses has only until 1st April 2019 to comply with MTD. Please make sure your accounting software can deal with online filing requirement due to MTD.
MTD is back on the horizon and it will impact on VAT shortly.
What changes does MTD for VAT bring in?
- VAT returns will be compiled by pulling data from digital records
- VAT returns will be sent to HMRC via API-enabled products and not through VAT portal.
- What won’t change?
- The VAT return will still be a nine box form
- The VAT return frequency and payment deadlines
- The eligibility for VAT Special Schemes.
What is the timetable?
|February 2018||Technical consultation on the regulations closed|
|March 2018||Regulations made|
|April 2018||VAT pilot –Live testing of MTD begins|
|April 2019||Businesses trading above the VAT threshold are mandated to use MTD|
So what does this mean to accountants and your clients?
MTD for VAT is literally less than one year away – you should be talking to us to discuss below;
- what software will be used?
- does this require a change from the current software?
- who will prepare/submit the VAT returns?
- does this require further software training?
The scope for disruption caused by the shift to fully digital record keeping should not be underestimated. By addressing these issues now you will be better prepared when other parts of MTD are implemented.