From 1 April 2019, nearly all VAT registered UK established businesses, with a taxable turnover above the VAT registration threshold (£85,000), will need to comply with Making Tax Digital (MTD) for VAT. HMRC has stated that one aim of MTD is to reduce the VAT lost through errors and mistakes arising from manual input. With this change, various requirements will be introduced for VAT registered organisations.
- Keeping VAT records digitally;
- Creating digital links between digital records; and
- Providing VAT return information to HMRC via an API (Application Programming Interface) through MTD software.
HMRC has issued their guidance on this in the VAT Notice 700/22: Making Tax Digital for VAT, they have also highlighted the few types of business that have been given deferment until October 2019. These include VAT divisions, VAT groups, public corporations and traders based overseas. If your organisation has been given deferment, you will have received a letter from HMRC, but if you aren't sure, get in touch with HMRC.
Buzzacott's bridging solution
We recommend you check if your current accounting software is compatible with MTD; most of the major accounting software providers, Xero, QuickBooks and Sage, are MTD compatible and will provide the Application Programming Interface link. However, if your software isn’t compatible, don’t worry! Buzzacott has designed a bridging solution that allows submission of your VAT returns directly to HMRC in a way that is compliant and hassle free.
If you are not ready for MTD, we are on hand to assist you in your preparations for implementation by doing the following:
- An initial impact assessment to determine next steps;
- Reviewing and transforming your VAT return process;
- Preparing or submitting your VAT return; or
- Supporting your decision on minimal compliance with MTD
Get in touch using the form below to hear more about our solution or if you need any further advice regarding MTD.
Or give us a call, +44 (0)20 7556 1200