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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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