As you’ll know, next year will mark an important milestone for Making Tax Digital (MTD). From April 2019 it will be mandatory for any VAT Registered business which has a taxable turnover above the VAT registration threshold (currently £85,000) to keep their records digitally and send their VAT returns using MTD compatible software. So, what software can you use?
Well we’re making great progress with this work, with more than 130 providers telling us their interest in developing software. Over 35 of these providers have gone on to tell us that – they’re aiming to have software ready for the first phase of the pilot where HMRC is testing the service with small numbers of businesses and agents. The pilot will be opened up to allow more businesses and agents to join later this year so keep an eye out for more information. A list of providers who are currently testing the products with HMRC is available here. Work is currently ongoing and so the list will be updated regularly. If you’re already using software you can also check with your existing supplier to find out what their plans are for making the software compatible with MTD.
If you want to sign-up clients to the MTD pilots, and/or send information via software on their behalf, you will need to create an Agent Services account – if you haven’t done so already.
Don’t forget - if your clients have Income Tax obligations they may be able to join the MTD pilot for Income Tax.
Join our Talking Points webinars
We’re going to be running some more webinars next week looking at MTD and VAT. Each webinar is aimed at Agents helping their clients prepare for this change and will cover, among other things:
- the digital recording keeping requirements
- recording adjustments required by VAT law
- what we mean by ‘digital links’
- an explanation of the ‘soft landing’ on the requirement for digital links.
Make sure you register for your place by clicking on whichever day is best for you below:
Where can you go for more information?
We know that many of you are currently supporting your clients to make the move to digital record keeping. But if you’re still not familiar with this, why not have a read of our earlier blog on the next steps to ensure your clients are prepared for MTD. You may also recall that in our most recent MTD blog we told you about the MTD VAT Pilot. There’s more information about MTD requirements in the recently published VAT Notice. A number of useful examples of how digital record keeping could work in practice are included in the Notice.
If you are new to MTD for VAT you may want to review Help and support for Making Tax Digital before the session.