MTD FOR VAT – Some Good News

Have you noticed that there always seem to be some change happening, something on the horizon to prepare for – auto-enrolment, GDPR and now Making Tax Digital.

They say change is inevitable, but it does get a bit tiresome when it’s as relentless as seems to have been the last few years.

Anyway, there is some Bad News and some Great News.

The Bad news

Making Tax Digital is coming.

You will be hearing more and more Making Tax Digital (MTD) over the next 6-12 months.  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 – (it’s no joke by the way)

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:

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat

To find out more about Xero and MTD click here:

https://www.xero.com/uk/resources/making-tax-digital/

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat

To find out more about Xero and MTD click here:

https://www.xero.com/uk/resources/making-tax-digital/

By |2020-08-18T11:03:37+01:00September 17th, 2018|Blog, Tax, Xero|0 Comments