We are on the home straight as far as Making Tax Digital (MTD) for VAT is concerned, with little over a month to go until the first group of businesses are mandated into the regime.
This affects around a quarter of the UK’s 2.67 million VAT-registered businesses, those with an annual taxable turnover of more than £85,000.
The first businesses crossing the start line on 1 April are those with a VAT quarter ending 30 June 2019, due for submission by 7 August 2019.
HMRC intends to have most VAT-registered businesses, asides from those with the most complex accounts, using the new digital accounting regime by 1 June 2019.
Those with more complex accounts can apply for a deferral until 1 October 2019 to get fully prepared before MTD for VAT becomes mandatory for them.
Making Tax Digital phased rollout
For VAT-registered businesses with quarters ending on 30 April will be the second batch to go through MTD from 1 May 2019.
Most businesses with VAT obligations will be mandated into MTD from 1 June 2019, when those with return quarters ending on 31 May join the regime.
From there, those VAT-registered firms with a deferral will have a further four months to get their houses in order before joining Westminster’s digital revolution.
Making Tax Digital software
Our VAT team have embraced MTD-compliant software from Kashflow, which intuitively links to our practice software provided by IRIS.
Embracing this software not only improves efficiency in terms of compliance, but it also provides you with real-time access to your accounts whenever you need it – a far cry from using spreadsheets.
More than 150 software suppliers and products have been approved by HMRC so far, so you have plenty of options to choose from if you go solo.
But you will not have the same levels of support or the advice of our experienced accountants to lean on in terms of bookkeeping and processing if you go it alone.
Get in touch
With MTD for VAT-registered businesses a matter of weeks away, you need to understand what records must be held digitally and what software will suit your business.
Speak to one of our advisers by calling 0141 221 257 or email us at contact@thomasbarrie.co.uk to find out how we can help your business with digital accounts.