Recap
Since the 1st April 2019 VAT registered businesses with a taxable turnover over the vat threshold (still £85,000) must submit their VAT returns under the Making Tax Digital (MTD) regime.
In my last blog I explained that businesses must be using software that is capable of ‘communicating with HMRC digitally via our Application Programming Interface (API) platform’. Simply put this means using software which does have the capability or using a spreadsheet with bridging software.
Bridging Software
I am now aware of at least one product that bridges with spreadsheets. See https://vitaltax.uk/ I can’t endorse the product but have been advised on my last tax update course that it is very easy to use including a YouTube demo.
So hopefully anyone reading this blog that is affected has got as far as making sure their software will work.
When do you have to do it?
This affects the first quarter that fully falls into the period beginning 01/04/2019. Therefore your first vat period beginning on or after 01/04/2019 is required to be MTD compliant.
Sign up to MTD
Before you can submit your first MTD compliant vat return you have to sign up to MTD. Business owners can sign up their business at https://www.gov.uk/guidance/sign-up-for-making-tax-digital-for-vat
Exemptions
There are exemptions in limited circumstances where there are religious grounds or other circumstances making MTD compliance impractical.
What about other taxes?
April 2020 is the earliest date that MTD may be applied to other taxes but it won’t be applied until the MTD system for vat has been shown to be working.
Further advice?
- Speak to your accountant
- Or Contact myself at The Fishbourne Accountant.