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Posts archive for ‘VAT’

25th October 2018

Making Tax Digital for VAT – What is it and does it affect me?

Filed Under: Tax, VAT

Making Tax Digital for VAT (MTDfV) will become a reality in April 2019 and all VAT registered businesses need to take steps to ensure that they are fully ready for this deadline.

The key to success is to get up to date with what MTD is all about, what its impact might be and what is required to ensure that you are going to be MTDfV compliant.

From 1st April 2019, all VAT-registered businesses with an annual VAT-able turnover above £85,000 (the current compulsory threshold) will be required to keep a digital record of their VAT transactions, as well as having to file MTD-compliant VAT returns using API enabled software.

This will mean all the business’ receipts and invoices will need to be digitally recorded and VAT returns will need to be directly submitted to HMRC from API enabled software and manual inputting will no longer be permitted.

The requirement to file VAT returns using MTD compliant software does not apply to businesses that have voluntarily registered for VAT and have a VAT-able turnover below the threshold. For the time being, these types of businesses can continue to keep manual books and records and can continue to submit VAT returns manually through their online HMRC portal, although we would recommend that these businesses look at becoming MTD compliant as the tax legislation may force them to do so as early as April 2020.

If you are a THL client, don’t worry… its all-in hand. We’ve been working on MTD for some time and we will be contacting our VAT registered clients directly over the next few months to let them know what to do to ensure a smooth transaction. We have also designed our Making Tax Digital with THL workshops which will include all the information businesses need to know.

If you are not a THL client and would like a better understanding of MTD and how it would affect you, please feel free to get in touch with us and book a space on one of our workshops.

Workshops will be starting on Monday 26th November 2018 and will be expected to last approximately 2 hours. Please see below for dates and how to secure a place.

  • Monday 26th November 2018
    • 9am to 11am                4pm to 6pm
  • Tuesday 27th November 2018
    • 9am to 11am                4pm to 6pm
  • Wednesday 28th November 2018
    • 9am to 11am                4pm to 6pm
  • Thursday 29th November 2018
    • 9am to 11am                4pm to 6pm
  • Friday 29th November 2018
    • 9am to 11am                4pm to 6pm

 *Workshops are free and available to THL clients and non-THL clients

To book please call 01903 300230 or email info@thlaccountancy.co.uk

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9th October 2018

Unsure on Making Tax Digital (MTD) and how it will affect your business?

Filed Under: Tax, Events, VAT

Making Tax Digital (MTD) is the biggest change to taxation since the introduction of Self-Assessment; designed to make sure the UK tax system is effective, efficient and easier for taxpayers.

From 1 April 2019, Making Tax Digital will begin for VAT-registered businesses above the threshold of £85k. Businesses will have to keep digital records and submit VAT returns using compatible software. Other components of Making Tax Digital, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest.

Unsure on Making Tax Digital (MTD) and how it will affect your business?

Join us for a FREE informative bespoke workshop designed just for you, which will cover:

  • Introduction to MTD
    • What is MTD?
    • How does it apply to you?
    • Complying with MTD
  •  MTD Compatible Software
    • Software available
    • Demonstration of software
    • How software links to MTD
  • Q & A Session
    • The account teams will be on hand to answer your questions

Please contact us to book your place on one of our FREE workshops:

  • Monday 26th November           –       9am – 11am or 4pm – 6pm
  • Tuesday 27th November           –       9am – 11am or 4pm – 6pm
  • Wednesday 28th November    –        9am – 11am or 4pm – 6pm
  • Thursday 29th November        –        9am – 11am or 4pm – 6pm
  • Friday 30th November             –        9am – 11am or 4pm – 6pm

Email us at info@thlaccountancy.co.uk or phone our switchboard on 01903 300230.

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26th September 2018

Making Tax Digital for VAT

Filed Under: Tax, Accounting, Business News, VAT

Making Tax Digital (MTD) is probably the biggest change to the tax system in the UK since the introduction of Self-Assessment.  Full MTD is being phased in over a number of years, with Making Tax Digital for VAT being introduced April 2019.


With effect from 1 April 2019 all businesses with a taxable turnover above the VAT registration threshold (currently £85,000) will be required to keep digital records and submit VAT returns digitally.  This obligation continues even if their taxable turnover subsequently falls below the VAT threshold.

Businesses that are voluntary registered with a turnover below the threshold are not obligated to keep and submit digital records.  However, these businesses may wish to comply to MTD if they believe that their turnover will exceed the turnover threshold in the foreseeable future.

It will be a requirement to keep digital records; these can be maintained in more than one program or software product. The use of spreadsheets, either to record individual transactions or as part of a suite of software and spreadsheets is permitted. However, the spreadsheet will need to MTD compatible so that data can be sent to and received from HMRC systems. Where the records are maintained in more than one program or product there must be digital links between each of the pieces of software.

Choosing software

There are many software packages out there that offer MTD compatibility, some more expensive than others and some offering more functionality.  Organisations that are already making extensive use of information technology will need to ensure that their software supplier is going to provide MTD compatible versions of the applications that they may use. In these cases the existing and future requirements of an organisation will need to be considered. In recent years we have seen a number of major changes to UK legislation; for example, GDPR, auto-enrolment, open banking and MTD.  In many cases it may well be easier and cost effective for an organisation to choose an application that resides, or is at least connected, to the “cloud”.  Applications that are hosted on the internet (in the cloud) are able to make connections with other digital services and as a result provide increased functionality and flexibility.  Those not currently using software will need to bring their accounts processes up to date.  There are many advantages to using modern cloud-based packages which can help increased efficiency and profits given the right support. It is fair to say that the rate of change in technology and business has never been faster. That rate of change will only ever increase. As a result, all organisations will need to consider how they will remain competitive in the future.

How we can help

We appreciate that this is a big issue for our clients and that decisions made now will impact significantly the future.  We are therefore offering free drop in workshops to look at the various software packages available and to discuss the criteria that you would need to consider ensuring you make informed judgements in your selection process.  Our ‘Getting to Grips with Making Tax Digital’ week commences on 26 November 2018.  More details will follow, and you will be able to sign up to workshops at our Autumn Drinks Party on 5 October 2018.

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