From 1 April 2019 all VAT registered businesses must participate in MTD.
MTD means that VAT returns will have to be filed using business bookkeeping software and must meet strict requirements. It will not be possible for the return to be completed and filed as an independent process and the existing HMRC VAT return filing function will close.
Any business that experienced the conversion to real time information (RTI) filing for payroll will recall the changes that this brought about and MTD for VAT is going to be very similar. MTD software will take the relevant VAT information from the accounting software and file the VAT return.
While many VAT registered entities are already virtually compliant, those that are not need to address the issue as soon as possible as the process to become compliant will take time. We believe it prudent to consider software choices at least nine months (July this year) in advance of the regime change. A smooth transition can only be achieved if sufficient time is allowed for planning and evaluation.
New bookkeeping programs are becoming available on the market in response to MTD and we are assessing some of these through our bookkeeping department whilst running them for clients. If you are uncertain how to proceed please do not hesitate to contact us as soon as possible because we can help you, but whatever you do make sure you act by 1 July.
If you need to you must act now to embrace this change because it cannot be ignored.
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