Making Tax Digital – are you ready?

Making Tax Digital is the biggest change to the UK tax system in decades. From 1 April 2019, VAT registered businesses and sole traders with a taxable turnover above the VAT threshold of £85,000 will be required to keep digital VAT records and file VAT returns directly to HMRC using compatible software. The rules around VAT are not changing. But the way you submit VAT records is.

 

What do I need to do?

Under MTD, you must ensure that:

Accounting records are kept digitally either through software or a digitally linked spreadsheet that is compatible with bridging software. You won’t be able to keep paper records after April 2019.

VAT returns are prepared using software that directly links to HMRC’s system. Bear in mind that not all accounting packages will be compatible with HMRC or support MTD. A full list of compatible software can be found here: Find software suppliers for sending VAT Returns and Income Tax updates – GOV.UK.

If you are using MTD compatible software, there is currently nothing you need to do unless you suspect that your records are not digitally linked or if your software is a desktop version and needs to be upgraded to a cloud-based version.

If you believe that you are not using MTD compatible software or that your digital records are not digitally linked, please contact our cloud accounting team at cloudaccounting@nlpca.co.uk.

Where can I get more information?

We’ve created some handy MTD FAQs and a Fact Sheet which you can download from here.

There’s also an overview of the changes on HMRC’s website: www.gov.uk/government/publications/making-tax-digital

How can Nyman Libson Paul help?

We are cloud accounting specialists and can make the transition to digital record keeping and digital submissions seamless and straightforward. Our experienced cloud accounting team is here to support you and is ready to answer any of your queries, even if it’s just to make sure your current systems are compatible. They can be contacted at cloudaccounting@nlpca.co.uk 

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