Latest News on MTD
As per our previous article in April, Making Tax Digital (MTD) is HMRC’s move to digitise tax. This means that as of 1st April 2019, UK businesses above the VAT threshold of £85,000 will be required to submit VAT returns using accounting software, where you’ll no longer be able to submit manually through the HMRC gateway. The situation with regard to both HMRC and Sage is now a little clearer and we are thus able to provide additional information.
What does this mean for you?
If you are a VAT registered business with a turnover of over £85,000, then from April 2019 you will need to, by law 1) Keep financial records digitally and 2) Submit your VAT return to HMRC with MTD compatible software
Its not all bad!
The whole point of the legislation is to make the process easier for individuals and businesses when it comes to uploading their VAT information to HMRC. The significant benefits to note are:
- One single view of all your tax information
- Real-time view of your Tax position
- No more “surprise” Tax bills
- More accurate and timely processing
- Reduction in opportunity for error and subsequent lost time to investigate & fix
What can you do to get your business ready for MTD?
Sage have been working closely with HMRC to prepare for the introduction of Making Tax Digital. If you’re currently submitting through Sage software, compliance could be as simple as installing the latest update. If you don’t process VAT through Sage software, we can discuss the options for your business.
Sage 200cloud and MTD
The latest release of Sage 200cloud (April 2018) is MTD ready and can enable the submission of VAT returns to HMRC through the software ahead of the mandate. However, we understand that many of our clients are on a previous version of the software and may not be ready to upgrade to the latest version at this moment in time.
With this in mind, Sage have created an MTD submissions module to enable you to remain compliant with MTD, whilst on a previous version. To remain compliant, you must have the module installed with your current Sage 200cloud software before April 2019.
Smith Cooper will be contacting our clients individually very shortly to discuss the best option for them.
What Can I Do to get my Business Ready for MTD?
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Sage sees Making Tax Digital as an opportunity for business owners to re-evaluate services, and businesses to streamline processes. Save time, save money, and get informed thanks to Making Tax Digital.