Making Tax digital is the UK Governments initiative to take all tax submission online and this comes into force on 1st April for VAT-registered businesses with a turnover of more than £85,000.
As of April, you will no longer be able to submit VAT returns manually via the HMRC website, it must be done via software.
Making Tax Digital is about more than merely filing your VAT return digitally — you’re also required to store some of your VAT information digitally (digital record keeping) and if you use more than one piece of software to store your VAT information and do your VAT return, they must be “digitally linked.”
We recommend that you start preparing for these requirements well in advance.
How much impact will there be?
If you’re already using accounting software, the transition might be relatively straightforward and could involve little more than taking advantage of feature updates. However, if you’re using older software, this might not be the case and you should check you have “functional compatible software.”
If you’re using spreadsheets or other manual records to prepare your VAT return, then you need to consider ways to replace that existing process with a software-driven approach for recording VAT details and filing VAT returns.
You can check which software packages are compatible with Making Tax digital by visiting the Gov.uk website.
To sign up to join Making Tax Digital go to the Gov.uk website and search for ‘Use software to submit your VAT Returns’, or you can ask you accountant to do this for you.
If you need help or would like to know more about Making Tax Digital, go to the Gov.uk website and search for ‘Making Tax Digital for VAT’ for their guidance pages.
If you would like help or advice on the hardware that runs your accounting software please get in touch with our team and they will be able to assist on 01392 824 022 or email email@example.com.