Are you a VAT registered business? Is your taxable turnover above £85,000?
VAT registered business? Forrester Boyd
By Forrester Boyd | Posted: 10 Jan 2019
Are you a VAT registered business?
Is your taxable turnover above £85,000?
YES…..then are you prepared for the changes to VAT submissions from April 2019?
NO…….don’t worry, you still have time but you need to act now.
From 1 April 2019 you will need to keep your VAT records digitally, you will also need to file your VAT returns to HMRC electronically using ‘compatible software’. The existing online HMRC gateway submissions will no longer work.
You need to look at your current accounting system and see if it will provide the functionality that you need, whether you need to upgrade what you have, or whether you need to implement a new cloud based system or bridging software. Making Tax Digital (MTD), is happening and you need to ensure you are ready.
What do I have to do?
You will need to keep and preserve digital records then submit VAT returns directly through compatible software. (This is not the HMRC online gateway, this will no longer be available).
Digital records and data you must keep are defined as your business name, address, VAT registration number, the value and time of the supplies and the rate of VAT charged.
You may therefore need to obtain or upgrade your software to comply with this change.
I heard HMRC are providing free software – is that right?
In short, no. HMRC are working with software providers to ensure commercial software is ready in time for the first deadline it is unlikely anything will be provided for free!
We would suggest sticking to the market leaders such as Xero, Quickbooks Online and Sage Cloud who have solutions ready to go.
I prefer a manual cashbook and don’t want to do this!
HMRC have defined that digital is the direction of travel and unless you are specifically exempt from the requirement you must submit your records digitally.
You may be able to claim exemption by way of age, disability, religion or remoteness of location – but beware of potential penalties if you do not have a valid claim!
I don’t have the time to deal with this?
We understand that running your business is the most important factor for you and many SME’s do not have the resource or the time to spare to get MTD ready. Forrester Boyd is geared up to support you, we can train you to do the bookkeeping digitally or provide the outsourced support to do the bookkeeping for you and make sure your business is ready for MTD.
Many businesses are realising the advantages of moving their accounts to a cloud-based platform. You have access to a wide range of intuitive tools that not only ensure you are MTD compliant, but offer time-saving benefits and real-time information to help upscale your business or increase your bottom line.
We have been working closely with the software providers to ensure we can offer clients the most suitable platform for their needs. We have a number of accounting professionals who can come and talk to you, look at your current accounting systems and recommend which option will be best for you. We know change is not easy, but we work with you to ensure you get the solution that works for your business.
Contact one of our MTD advisers on 01472 350601 today to discuss your needs.