You will be hearing more and more Making Tax Digital (MTD) over the next 6 weeks. MTD is, according to HMRC, “a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs”
MTD for VAT means a different VAT return, more frequent corporation and individual tax returns, electronic records and more frequent tax collections.
The plan is being rolled out in stages and stage 1 is all about VAT and starts from 1st April 2019
From 1 April 2019, all VAT-registered UK businesses above the £85,000 VAT threshold will need to keep records digitally and submit VAT returns to HMRC using MTD compatible software.
The great news
100% of our clients are MTD ready and you could be too.
If you are using Xero there’s nothing you need to do and when the time comes the disruption will be at a minimum.
The team at Xero have been busy building their MTD functionality and are working closely with HMRC to have it ready in time for April 2019.
Once the functionality is ready, we will work with Xero to ensure we’re well-equipped to support our clients with their MTD compliance.
If you want to find out more about MTD for VAT click here for full guidance:
To find out more about Xero and MTD click here:
https://www.xero.com/uk/resources/making-tax-digital/
Time to Ditch the spreadsheet?
If you needed some extra motivation to ditch your bookkeeping spreadsheet then MTD is it. We actively help all of our clients to use Xero so we can keep an eye on their finances, but if you are using a spreadsheet to manage your company’s books now is the time to convert.
Don’t get me wrong, there will be a solution to help you report VAT under MTD with a spreadsheet, but I guarantee it will be difficult to use.
If you are unsure on how you will be affected by MTD or about converting to Xero then please email me: will@accsysltd.co.uk
