Registering for Making Tax Digital for VAT
The moment has come: if your business has a taxable turnover above the VAT-registration threshold, which is currently £85,000, you’re now obliged to keep records in digital form and to file your VAT returns using HMRC-approved software.
What you need to do right now
If you handle your own VAT returns, there are a few things you need to do straightaway, if you haven’t already – and we really hope you have, because there are penalties for failing to comply.
First, make sure you have MTD-compatible software. A list of approved packages is available on the HMRC website, including some that are free.
In many cases, you will also be able to use your existing software, including spreadsheets, as long as it is capable of communicating directly with HMRC’s systems, or works with ‘bridging software’ that can perform that function.
You then need to make sure the MTD capabilities of your software are enabled, before delegating authority to the software via your Government Gateway account.
Then, you need to register for MTD, also via the Gateway.
Be aware, though: once you’ve signed up to manage your VAT returns via the Making Tax Digital process, you can’t go back.
The easy way
If we’re already handling your accounts, that makes the registration process considerably easier.
We’ll already have the appropriate access to your HMRC account and simply need to ‘link existing clients’.
If you’re not a client but would like advice on ensuring compliance with MTD, or help with your VAT returns, please contact Andrew Kershaw on 023 8046 1245.