Making Tax Digital – Pilot Update
Making Tax Digital for VAT (MTDfV) is still the hot topic of the moment (aside of course from Brexit madness!), and while there has been some speculation that, under the influence of the House of Lords, roll out of MTDfV may be delayed April 2020, other evidence suggests that this is highly unlikely.
HMRC has now begun writing to businesses alerting them to Making Tax Digital for VAT, so if you are a VAT registered business, trading over the VAT threshold then it is likely that you will soon receive a letter from them if you haven’t already done so.
However, HMRC are ONLY writing to those businesses who are eligible to join the MTD for VAT (MTDfV) pilot scheme at the moment, so it may be that you will be affected but may not yet hear from them.
There is a full article from the ICAEW via the link below, which in turn links to a list of businesses which are eligible to join the pilot, as well as giving examples of the letters being sent out.
At present we are on track to ensure that all our clients are compliant with the new legislation when it comes into force on 1 April 2019. We have partnered with Xero, the UK’s leading provider of cloud accounting software and are working closely with the team there. Some of the things we love about Xero is the fact that their software has never been breached, nor have they ever lost any date; all information is stored in the cloud meaning that there is no software to install or updates to run, and you can access your accounts any time, from anywhere, on any connected computer, phone, tablet or other app. For more about Xero for Business, have a browse on their website, or feel free to contact one of the team here.
If we currently process your VAT returns and know that to date you are not yet compliant we will have written to you advising you of our plans for your accounts and when any changes will take place.
If we know that you are VAT registered and you trade above the VAT threshold, and are unsure as to whether you are currently using compliant software, then we will have written to you advising you the you will need to check.
If we know you are already using compliant software, or trading below the threshold, we may not yet have communicated with you, so please feel free to get in touch for further information.
There are of course other software providers available, and a full list of those which are compliant or working with HMRC towards compliance can be found here
Remember, MTDfV is just the first phase in HMRC’s plans to roll Making Tax Digital to all taxes, both personal and business.
We are MTD ready, so as always if you have any questions relating to this or any other articles, please don’t hesitate to CONTACT US via all the usual channels.