For VAT periods beginning on and after 1 April 2019, most VAT-registered businesses will have to submit their VAT returns directly from some form of software, with no manual retyping of figures. All the VAT records also need to be kept in a digital format.
This new approach to filing VAT returns and keeping records is part of the making tax digital (MTD) project, which will be expanded to include returns for all the main taxes in future years.
For certain businesses, such as those that use the VAT annual accounting scheme, the start date for MTD for VAT is deferred to the first VAT period which begins on or after 1 October 2019.
Businesses that are registered for VAT on a voluntary basis can choose whether to file the VAT return in the current fashion by typing in figures to HMRC’s online form, or to join the MTD project and use software to submit the return.
We will be able to submit your VAT return on your behalf as now, but there are some procedures to follow to get your business ready for the MTD regime.
The best way to prepare for this digital revolution is to get into the habit of recording all your sales and purchases using accounting software, or at least on a spreadsheet. We can help you choose and implement the right software for your business.
Action Point!
Is your business ready for MTD?
