MTD for VAT is now here for VAT registered businesses
A reminder of the key points:
- If your ‘taxable’ turnover is more than £85,000 this affects you
- This affects the first VAT period starting from 1 April 2019; so for a lot of businesses this will be the June VAT return
- You will need to register with HMRC via their website
- It is advised that you register with HMRC once your last ‘non-MTD’ VAT return is submitted and the VAT due from that has either been paid or refunded
- You will need to link your software to the new HMRC portal
- If you are using spreadsheets or your software is not MTD ready, you will need to use ‘bridging software’ to submit your VAT returns
There are some businesses that will have a 6 month reprieve from registering if they fall into certain categories; including:
- If you are part of a VAT group
- If you are based overseas
- If you are a trust or a not for profit organisation that is not set up as a company
- If you use the annual accounting scheme
Businesses using spreadsheets will be able to continue to use them to report VAT, providing they are used in conjunction with a solution that can report digitally to HMRC.
What this means in practice is that businesses will be allowed to use ‘bridging software’ solutions, to translate and report their VAT spreadsheets into a digital format that is accepted by HMRC, and still remain within the rules.
Roffe Swayne can provide advice and support on making the transition to digital VAT reporting.
We’ve been busy here at Roffe Swayne making sure we’ve got the right software to help our clients and guide them through the process. If you aren’t sure how or if MTD for VAT will affect you, please do get in touch.