HM Revenue and Customs (HMRC) has introduced new legislation to digitise the tax system and the way businesses maintain their records. This legislation will eventually affect income tax, corporation tax and VAT, however MTD for VAT is being introduced first.
From 1 April 2019, affected businesses will no longer be able to submit their VAT returns through the government gateway. Instead, businesses will be required to use MTD-compatible software which prepares the VAT return and sends it to HMRC digitally.
To be MTD-compatible, the software you use must integrate with HMRC’s systems. A list of HMRC recommended software packages that are MTD compliant is available here.
You will need to comply with MTD if you are:
If your current software supplier has no plans to upgrade software to be MTD compatible in time for 1 April 2019 or you currently maintain your records manually, please contact us and we can advise you of your available options.
If you are currently using Excel to maintain your records, we have several bridging solutions available to ensure you are MTD compliant.
Whatever your situation, we are more than happy to talk through the best options to ensure you are MTD-compliant before the deadline.
For advice on implementing digital systems or for further information on what MTD means for you, please contact Alison Horner or Androulla Soteri.
The way financial data is both recorded and reported is soon to be modernised.
Find out more