Making Tax Digital for Business
Originally geared toward smaller businesses, the ‘Making Tax Easier’ project by HMRC has changed considerably to the current ‘Making Tax Digital for VAT’ deadline that is looming in April 2019. Will it have an effect on your business? If you are currently below the VAT threshold, then there are no new requirements to your business – for now. If you are over the threshold, you will no longer be able to submit the quarterly VAT return via HMRC’s online portal. Instead you must use MTD capable accounting software to submit your return, reducing the possibility of incorrect or inaccurate information being entered manually.
For most of our clients approaching MTD, providing the software used is up to date it’s going to be business as usual. If we process your bookkeeping for you, our systems will be capable of sending the correct information to HMRC in time for April 2019.
If you feel that your business may need help in processing your VAT through an up-to-date Accounting Software package, we can offer Bookkeeping services and training toward Making Tax Digital for VAT requirements.
Although no software suppliers have yet released software fully compatible with the new requirements, most have released statements of their plans and commitment to the deadlines. We have spoken to the major software suppliers that our clients use and are confident that they will be ready. All software will however need an update to be compatible, so you may be required to install the latest version.
Sage has been working with HMRC on the MTD API since 2017. We’ve been working with selected accountants, bookkeepers and customers on beta testing and development. A public beta will then be open from August 2018 through to March 2019, ahead of MTD for VAT Returns from 1st April 2019.
We’re on the HMRC list of recognised software suppliers and we’ll be ready for Making Tax Digital by April 2019.
HMRC lists Xero as software that will be compatible with MTD for VAT. Having consulted with HMRC on Making Tax Digital, Xero is committed to supporting small businesses and their advisors through the transition.
For a full list of HMRC approved software vendors, please visit: