Making Tax Digital (MTD) for VAT makes it mandatory for VAT-registered businesses above the £85k threshold to keep records and submit VAT returns digitally using compatible software. MTD is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.
Tax recording will be more accurate, providing fewer opportunities for errors, miscalculations and fraudulent activity. The process will be faster and more automated for businesses, accountants and HMRC, helping them save valuable time. With the right software, Making Tax Digital will make it easier for small businesses to record and file their tax returns online.
You may remember a blog we posted recently regarding the timeline for registering for Making Tax Digital. For those of you that have just completed your monthly VAT return for March, this will be your last non MTD return. The submission deadline is 7th May. You can register for the new MTD regime 7 days after you have submitted your March return, however you MUST register by 16th May. The process takes 72 hours so be careful not to get caught out here. Click here to see the timeline you need to be working to.
Once you have registered, you will need to link to your software. This process will vary according to the software you are using but it must be HMRC compliant. A full list of MTD compliant software can be found here .
Kilby Fox are in Partnership with Xero to ease our clients through this process. We can take out a subscription to this cloud-based software on your behalf and can provide training to those that will be using it, either at your place of work or at our offices to get you up to speed. Click here to read through FAQ’s regarding MTD & Xero software. Alternatively, please contact us for more information.