Are you ready?
We commenced seminars for clients back in 2017 and since that time there have been changes to the original Making Tax Digital (MTD) rules.
To start with, they are now only being implemented to affect VAT reporting. Lambert Chapman LLP have been continuously reviewing these rules and have been testing various software options available on the market.
What you need to know:
Making Tax Digital (MTD) rules take effect from the first VAT Period commencing on or after 1 st April 2019. These new rules apply if you are VAT registered, and your VATable turnover (i.e. excluding exempt turnover and that which is outside the scope of VAT) is more than £85,000 per annum. It is a requirement that businesses which are affected must register for MTD and keep electronic records so that their VAT Returns can be submitted directly from computer software.
|Vat Period End||First Return to be submitted under MTD|
|Mar / Jun / Sep / Dec||June 2019|
|Jan / Apr / Jul / Oct||July 2019|
|Feb / May / Aug / Nov||August 2019|
If you do not currently use software that is MTD compliant, there are a few options available to you to ensure compliance with MTD regulations:
- Upgrade your existing software or take on new software that is MTD compliant. Your current software provider will be able to confirm the cost of any upgrade.
- Utilise “bridging software” to submit extracted data that is produced by your software. We will be utilising some appropriate software developed by BTC and you are able to purchase directly for £50+VAT per annum. To purchase please go to https://mtdfvat.co.uk/choose-your-product-version/ and choose Lambert Chapman LLP from the drop down list under “how did you find out about us”.
- Spreadsheets users can utilise “bridging software” as mentioned above to submit data directly to HMRC.
- Businesses with manual records will need to move to computer software or spreadsheets in conjunction with bridging software.
If MTD applies to your business then you must register for MTD with HMRC. This can be completed by logging on to https://www.gov.uk/guidance/sign-up-for-making-tax-digital-for-vat. You need to allow 72 hours for HMRC to complete the process and once you have registered all future VAT Returns must be submitted directly from your computer software.
If you pay your VAT by direct debit then you are unable to sign up to MTD in the 15 working days before a VAT Return is due and the 5 working days after and so planning your enrolment date is important.
If you have any questions regarding MTD then please contact Sean Wiegand or your local Lambert Chapman contact on 01376 326266.