SMP ARE READY FOR MTD- ARE YOU?
VAT
Making tax digital is the biggest change in UK VAT Legislation in recent history and means that from 1 April 2019, businesses with a taxable turnover above the VAT threshold (currently £85,000) will need to submit their VAT Returns through functional compatible software
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There are some exceptions, but filing VAT Returns electronically – by logging on to the HMRC portal and manually completing the VAT Return – can no longer be done
Records must be kept digitally too
It’s not just the VAT Return that needs to be filed digitally – the information supporting the figures must be kept digitally too. It is important that:
• Records are kept in a digital form
• A VAT Return can be created from the digital records
• MTD compliant software is used
Who is exempt from MTD for VAT?
Businesses below the VAT Registration threshold (currently £85,000) are automatically exempt
If it is not practical for businesses to keep digital records because of location or disability, then an exemption can be applied
It is important to understand that in applying for an exemption, HMRC will not grant this purely on the basis that reasonable effort, time and cost may be involved in making the transition to MTD, for example, choosing and buying any new hardware or software or learning how to use them. HMRC will however take effort, time and cost into account in its overall assessment of whether it is practical for you to follow the rules for MTD.
Contact us about MTD
Please get in touch if you are concerned how MTD could affect your business. We can help to get your business ready for MTD and keep you compliant with HMRC