Making Tax Digital for VAT
Making Tax Digital is now less than three weeks away and it’s important that businesses are ready for the big switch over. Reports show that over 1.4 million businesses have still not yet registered to the new scheme.
This first stage of Making Tax Digital is compulsory for businesses that are VAT registered and over the VAT threshold (currently £85,000). It is these businesses which must submit their VAT returns via compatible software.
To help remove the tag of ‘Making Tax Difficult’ and with the clock ticking for those who are still unsure of how to complete the process, we have outlined a quick 4 Step process to getting ready.
Please note: Once MTD is switched on you must submit VAT returns via software; submissions using the HMRC online portal will no longer be registered.
Also, you cannot leave the Making Tax Digital scheme once you have entered it. (This is regardless of your position relating to the VAT threshold in the future.)
This guide is for entities which submit their own VAT returns.
For clients that have Returns submitted on their behalf by an agent (e.g. D H Tuck & Co) this will be done automatically and no further action is required.
Check whether you are required to comply with the new legislation.
Ensure you have compatible software in which to submit Making Tax Digital Vat returns.
Sign up for Making Tax Digital; you will just need some basic information to complete the form in the link below. You will receive a confirmation email once you have been registered on the scheme within 72 hours.
Link your software; each software will have its own procedure. There is normally an option within the VAT section of the software in which to ‘turn on’ MTD and this will then link with HMRC to submit returns in the correct format.
Don’t forget your first submission is due on your first VAT period Starting after the 1st April 2019.
E.g. Quarterly returns covering 1st March – 31st May 2019 can still be submitted using the previous system.
If you have any trouble with registration, or would like us to begin submitting your VAT return on your behalf, please get in touch.
This blog is published for information purposes only and readers should seek further professional advice. D H Tuck & Co Limited cannot accept liability for any mistakes or losses made based on the information provided.