Should I be doing something about Making Tax Digital ("MTD")?

If you are a business with a turnover above the VAT threshold (currently £85,000) then you must keep digital records for VAT purposes and provide VAT return information to HMRC using MTD "functional compatible software" from 1 April 2019 - under a year away!

HMRC is running a pilot scheme for MTD for VAT this year which hopefully will iron out some of the issues that will arise in the implementation of the digital system.

MTD Software

Under the new MTD rules, businesses will have to use ‘functional compatible software’. This means a ‘software program or set of compatible software programs which can connect to HMRC systems.

Software will not be available from HMRC. The use of spreadsheets will be allowed, but they will have to be combined with add-on software to meet HMRC’s requirements.

Haines Watts Manchester have reviewed a range of online tax accounting products. We are pleased to have made the decision to partner with Xero, the UK’s leading online tax accounting software.

Helping with the challenges of MTD

Whatever the size of your business, there is a time of great change ahead, and we are on hand to help with the challenges.

There are issues that VAT registered businesses would do well to consider now. One key area is whether business transactions are currently recorded digitally. If they are not, consideration should be given to recording some/all transactions on a digital basis.

We would be happy to help you with any issues arising from MTD for VAT. We would also be able to undertake bookkeeping services for you to enable you to comply with the requirements. Get in touch!