VAT – Making Tax Digital DOC ID: 78274
HURST VAT - MTD WHAT IS GOING ON?
VAT – Making Tax Digital (MTD) What is changing – Immediate Impact | From February 2018, the linkage between existing accounting software and the HMRC portal has been changed | Unless your software is MTD compliant you will no longer be able to submit VAT returns using your existing accounting software | Instead VAT returns will need to be manually submitted through the HMRC portal using your Gateway login Implications | You will need to ensure that you have your Gateway ID and password to hand! | You will also need to allow extra time for submission to ensure there are no access / reporting issues
VAT – Making Tax Digital (MTD) What is changing – Future Impact Implications | From April 2019, businesses will not be able to | Depending on the accounting software in use, you may submit VAT returns using the HMRC portal using need to undertake the following: their Gateway login ✓ Get updates to your accounting software from your | Paper VAT returns will no longer be accepted by provider HMRC ✓ Upgrade your existing accounting software | VAT return submissions will only be accepted from ✓ Change accounting software to a package that is MTD enabled software MTD enabled | Businesses will need to maintain digital records for ✓ Review your accounting processes where digital VAT purposes records are not maintained (e.g. expenses or batch sales journals) to ensure that you are compliant with the new requirements
VAT – Making Tax Digital (MTD) Responses from accounting software providers Generally SAGE | Some software providers will issue updates to their | Sage have made their software MTD compliant from v24 software to make it MTD compliant, however this onwards will depend on the individual providers and there However: may be a cost associated with this. | Upgrading to v24 requires a change in their charging | Some software providers are only making the MTD model, away from a license purchase option to a compliant changes to newer versions of their software which may require a purchased upgrade monthly subscription model (as is the case with XERO) | The new subscription model could represent a | As the compulsory date for MTD is not until April 2019, this is very much an unknown at the stage significant increase in cost for clients which will depend on the complexity of their business amongst other | For clients with bespoke or non-standard software, factors they should approach their providers to understand their options | Clients not currently paying any license costs (i.e. older version users) will now become subject to monthly costs
HURST MTD – NEXT STEPS
VAT – Making Tax Digital (MTD) Upcoming seminar Thursday 10 May 2018 | 8.00am – 10.00am We will be holding a Seminar on Thursday 10th May, with internal and third-party accounting experts providing further insight to the upcoming changes. Experts will be on hand to demonstrate “ Xero ” and “Sage” and advise which package will be best suited to your business needs. Both are cloud accounting software packages capable of linking to various add ons, helping streamline accounting transactions. Both software packages are also fully MTD compliant. CLICK HERE TO REGISTER FOR THIS EVENT
Contact us if you have any questions! Tel: 0161 477 2474
Recommend
More recommend
